Feast your eyes on this beaut! USD/CAD is sporting what looks like a descending triangle. Watcha think? This chart pattern is usually taken as a bearish signal. But don’t get too carried away shorting the pair! It might be better to wait for a strong bearish close below the support area around 1.0255 before pulling the trigger.
Yowzers! EUR/USD looks like its currently testing resistance at the top of the falling channel on the 4-hour timeframe. If there are enough bears in the market, I wouldn’t be surprised to see the pair soon tumble to the bottom of the channel around 1.2830. However, if the euro still has enough muscle to hustle, we could see EUR/USD trade past resistance and test 1.3300 once again!
Double top alert! Where? Just zoom in to the hourly chart of GBP/JPY! Price has managed to pullback to the 50% Fibonacci retracement level and test the neckline. Will it hold? If you’re looking to trade the pair, it would be a good idea to keep tabs on candlesticks. A bullish marubozu around 143.00 could hint that the pair is on its way up to 144.00 while bearish candlesticks could mean that we’ll soon see GBP/JPY drop to 140.50.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.