Is it me or is GBP/USD on a falling channel? In fact, it looks like Cable is headed for 1.6350, which is a former support and is currently a mid-channel resistance. Stochastic isn’t giving any signal for now though. A couple of bearish candlesticks at the psychological area would be awesome if you think that the pound isn’t done falling. On the other hand, you can also wait for the pair to retest its support around 1.6300 if you’re one of them pound bulls.
Here’s one for break-and-retest fans out there! AUD/USD has just bounced from a previous range support on the 1-hour chart. And get this – there’s also a bearish divergence in the works! A stop just above the level would be a good idea if you’re planning on day trading this setup. Be careful though. Forex Gump has warned me that the NFP report is just around the corner!
Since we’re talking about the NFP report, why don’t we take a look at this solid USD/JPY trend? I’m seeing a possible retracement move around the 101.00 psychological handle, which is near a 38.2% Fib on the 4-hour chart. Heck, the pair might not even reach the level if the report comes in strong. Just something to keep your eyes on in case you’re looking for entry or stop loss areas!
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.