First up is a simple support-turned-resistance play on EUR/USD. What makes this setup more interesting is that the resistance level lines up with a 38.2% Fibonacci retracement on the 4-hour chart. Stochastic hasn’t reached the overbought region though, so you might want to take a chill pill and wait for the setup to ripen before you join the bears’ bandwagon.
If you’re not too excited about shorting the euro, then this setup is for you! EUR/CAD has been hugging a rising trend line since early July and it looks like it’s due for another retest. And get this – the trend line is lining up with a 61.8% Fib retracement this time AND there’s a bullish divergence supporting a possible upside move. Watcha think? Will the trend line hold?
Check out this pair blasting off from its 88.50 support! After consolidating at the former resistance area, AUD/JPY has caught the attention of the currency bulls and is now on its way up. Not only that, but Stochastic is also in the oversold area! A stop below the recent lows could still get you a sweet risk ratio if you’re planning on making the previous highs your profit target.
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.