The pound bears better get ready if they’re planning on shorting today! Cable is headed for the 1.5150 zone, which lines up nicely with a possible falling trend line resistance. Not only that, but it’s also near a former support as well as a 61.8% Fib retracement. A stop loss above the trend line is good enough if you aim for yesterday’s lows.
USD/CHF‘s setup today is a good reminder not to get rid of trend lines immediately after they’re broken. Since late last month the trend line on the chart has served as a resistance, support, and then resistance again. Will it serve as support this time around? Keep a close eye on this one, homies!
For those who are planning to trade Canada’s reports but don’t want to trade the Greenback, then you can trade this comdoll cross pair instead. CAD/JPY is on its way to the 93.25 area, which is right near the top of a falling channel and yesterday’s resistance. Remember that this is a 4-hour chart and a cross currency pair so make sure you consider volatility when placing your entry and exit orders!
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.