First up is a steep falling channel on USD/JPY‘s 1-hour time frame. The pair found support at the 97.00 major psychological handle, but it looks like it’s not going far with a previous support and a mid-channel level serving as resistance. You could wait for the pair to touch the area if you’re really bearish on this baby, but you can also wait for the pair to make new lows if you’re not too sure of its direction.
Someone holler at Cylopip! GBP/NZD is having trouble breaking below the 1.9500 psychological area. And why not? The zone is not only near a trend line support but also a 61.8% Fib retracement level. Not only that, but I also spy with my cool eyes a possible bullish divergence! A stop below the trend line could still be a good idea if you’re thinking of buying the pound all the way to its previous highs.
Last but definitely not the least is a cool support-turned-resistance setup on USD/CAD. The pair is on its way to a retest of a broken rising trend line, which also lines up with a 38.2% Fib level. Is that cool or what?! And if that’s not enough for ya, then check out the overbought stochastic signal! If you’re not too experienced in trading broken support and resistance levels, then you might want to wait for USD/CAD to make new lows before you jump in.
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.