Time for the pound to crash and burn? On its daily time frame, it appears that GBP/USD has already broken down the neckline of the double top formation. Y’all know what this means, right? This could be the confirmation that pound bears have been waiting for before pushing this pair much lower! Stochastic is headed down, suggesting that there’s enough selling pressure to keep Cable moving south.
Careful, euro bulls! EUR/JPY is currently stalling around the 61.8% Fibonacci retracement level on its 4-hour time frame while stochastic is indicating overbought conditions. This pair might have trouble breaking past the 134.00 major psychological level, as it also lines up with a former support area. Do you think EUR/JPY will head back to its previous lows around 131.50?
For the shorter-term traders out there, this setup’s ripe for the picking! USD/CAD has been moving inside a rising channel for almost a month already and it has just tested the range resistance. At the same time, stochastic is pointing down, suggesting that the pair could make its way back to the bottom of the channel. Make sure you set your stops right when trading this one!
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.