Do you like trading Fibonacci retracement levels? If your answer is yes, then this setup is perfect for you. As you can see, EUR/JPY seems to have formed a temporary top just above the 100.000 handle. Both price and the Stochastic is heading lower, suggesting that we could see a retest of the previously broken resistance level at the 99.00 handle. If you’re part of the bull camp, this could be a good level to jump in long again, as it coincides nicely with the area between the 50% and 61.8% Fibonacci retracement levels.
Beware Cable bulls! It looks like Cable’s uptrend could end very soon! If you look at the pair’s price action in the past few days, you’ll see that the pair could have found a potential top. Price has stalled and failed to make a new “higher high.” Also note that the pair has tested the rising trend line four times already, which means a lot of traders are paying attention to it. Generally speaking, the more traders looking at a support level, the likelier it is to break.
Looking for a breakout trade? Look no further then! After exploding out of its symmetrical angle pattern, USD/CHF has formed ANOTHER breakout formation. This time, the pattern is a bearish flag. Bearish flags, which are considered as continuation patterns, serve as breathers for the sellers before they run off again in the same direction. In this case, a convincing close below the consolidation could open the way for price to fall to .9400 and then .9300.
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.