The euro bears had defended the 1.2960 area pretty well considering the wild volatility that we saw on EUR/USD yesterday. Will the bears hold their ground for another day today or will the bulls finally break above the support-turned-resistance level? This setup recognizes an inflection area rather than a hard level so make sure that you make room for a bit of volatility when placing your entry and stop loss levels!
Doji alert! Dojis have been popping up on EUR/AUD‘s 4-hour chart, which is interesting considering that it’s hanging around a 38.2% Fib near a falling trend line and a former resistance area. If you think that the Aussie is about to leave the euro eating dust, then you can short near the Fib levels and place your stop losses above the falling trend line.
If you’re one of them euro bulls this week then you can take advantage of a possible 38.2% Fib support on EUR/GBP‘s daily time frame. The pair is stalling just below the .8600 handle while a possible bullish divergence is heating up. A stop below February’s low can still give you a good R:R if you aim for this year’s highs.
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.