Ahh… Don’t you just love waking up to beautiful setups? Take a look at this one on USD/CHF! It’s almost ripe for the picking yo! The pair is fast approaching the .9300 handle, a major area of interest, and with Stochastic deep in overbought territory, it seems like we have a valid sell signal on our hands. Of course, there’s always the possibility that the pair will break out to the upside, so keep your finger off the trigger until you get confirmation from candlesticks, aight playas?
If you dig playing major psychological levels, then you’ll love this setup on AUD/USD! Right now, it’s less than 30 pips above parity, which we all know is the mother of all psychological handles. Seeing as price reacted so well to this level in the past, there’s a good chance that we’ll see some sort of reaction when AUD/USD revisits 1.0000. A bounce off parity could lead to a rally back to 1.0300, while a break below this level could start a fall all the way down to .9700.
EUR/JPY brings up the rear with this play on the 103.50 support area. Do you think the pair has finally bottomed out or is it going to burst through support once again? If this level holds as support, it could complete a double bottom formation and price may find its way back to 105.00. On the other hand, if candlesticks begin closing below this minor psychological handle, the pair may work its way back to this year’s low at 101.00. Can’t decide which side to play? Let this candlesticks cheat sheet guide the way!
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.