Are you a euro bull? Or one of ’em Loonie bears? Either way, you might find this EUR/CAD setup to your liking! The pair is currently finding support at the bottom of the rising channel on its 1-hour time frame while stochastic is climbing out of the oversold region. This suggests that there’s enough momentum to push the pair back to the top of the channel around the 1.5650 minor psychological resistance. Make sure you set your stop below the channel support if you’re planning on jumping in a long trade!
Now here’s a larger forex range for the longer-term traders out there. CAD/JPY is currently testing support at the bottom of its range on the 4-hour time frame. If the rally has legs, CAD/JPY could climb all the way up to the range resistance near the 94.00 major psychological handle. Be mindful though that stochastic has already reached the overbought zone, indicating that Loonie bulls are feeling exhausted.
Y’all didn’t think I’d leave out a possible break-and-retest situation, did ya? As you can see from its 4-hour chart, EUR/GBP recently broke above a falling trend line. This could mean that a trend reversal is in the cards but before the pair can head any higher, it might need to make a quick pullback first. The 38.2% Fib coincides with a former resistance level around .8300 while the 61.8% level lines up with the broken trend line, which means that any of these areas could act as support. Better wait for stochastic to reach the oversold zone before trying to hop in the potential uptrend!
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.