Can’t get enough of the Greenback? USD/JPY might have encountered a wall around the 102.00 handle, but it doesn’t mean that the yen bears aren’t waiting somewhere. In fact, the 101.00 major psychological handle is looking pretty good for a support area as it’s near a previous resistance and the 38.2% Fib. Will the dollar bulls step in or are they done pushing this pair higher?
If you think that the Aussie is done selling off, then you better watch out for the .9280 area! Not only has the level served as a strong support before, but right now it’s also lining up nicely with a 50% Fib on the 4-hour chart. You could wait for a break above the psychological area if you’re one of them Aussie bulls, but you can also use the retracement opportunity to add to your positions if you think that the Aussie selloff isn’t done just yet.
Here’s one for trend traders! GBP/CAD has been on a tight rising channel on the 4-hour chart and it had just found resistance at the top of the pattern. Will the mid-channel area serve as support? With Stochastic not yet on the oversold area, you can afford to wait for the pair to actually touch the mid-channel zone and show a couple of reversal candlesticks before jumping in on the pound 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.