I know that Guppy has been trading lower for the past few trading days. However, don’t get too excited shorting the pair! Looking at the daily timeframe, we see that the pair is now testing its previous resistance for support which, coincidentally, is around the 38.2% Fibonacci retracement level. IF there are enough bulls in the market, we could see the pair rally back up to 128.00.
For comdoll fans out there like Happy Pip, this setup on USD/CAD might just tickle your fancy! On the hourly chart, we see that the pair is forming what looks like an ascending triangle. It has been making higher lows and is now testing resistance at .9850. Will it hold? Stochastic suggests that the pair is already overbought which means that we could see USD/CAD tumble down to the rising trend line and test support around .9800. However, a strong break above last week’s high may mean that the pair will trade back above .9900.
Awww, snap! It looks like the dollar bulls pounced on USD/JPY at its previous low! If we see more bullish candlesticks materialize, I won’t be surprised to see the pair test resistance around the 79.00 major psychological handle soon. But be on your toes! Reversal candlesticks could mean that USD/JPY may soon make a new low.
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.