Looks like traders aren’t quite ready to take EUR/USD lower, eh? After forcing the pair below the 1.3000 major psychological handle, the market took a U-turn and pushed price back inside the range. If you think it’ll keep rising, aim for the previous high around 1.3200. On the other hand, if you feel that sellers are just taking a breather, you might want to wait for EUR/USD to close convincingly below the range’s support level before loading up on a short position.
It will take a major retracement, but if USD/JPY manages to fall back down to the area of 99.80, expect to see some interest! After all, it was a solid resistance level in the past, so traders might think twice before they let price cross this critical zone once again.
What do you get when you put together a rising trend line and a potential resistance-turned-support level? A sweet setup, that’s what! Right now, sellers seem to be in control of GBP/JPY, but they’ll be facing a tough area of interest around 154.50. If this level holds as support, a retest of the previous high could be in the cards. However, a break of this level might take price all the way back down to 153.00.
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.