Remember that mid-channel resistance that I pointed out early this week? Well, it looks like it didn’t take. However, the top of the channel resistance is not far up ahead. This is probably more exciting as it’s also near the 1.0550 minor psychological resistance and USD/CAD‘s previous highs. Of course, you could always wait for candlesticks before you jump in just in case the dollar bulls are willing to push it to 1.0600.
Check out this clean range setup! Cable has been on this 350-pip range since mid-September and it looks like it’s about to have another go at the 1.6250 resistance. Think the pound bears will jump in at the level again? The pair isn’t far from the psychological resistance, so y’all better think fast if you’re thinking of shorting this baby!
Last up for the week is a sweet rising trend line on EUR/USD. What’s making this trend even sweeter is that the 100 SMA is also supporting the move. A stop just below the support areas could get you a sweet risk ratio if you’re planning on buying the euro. Be smart about placing your profit targets though. I hear from Pip Diddy that the ECB is determined to keep this common currency down!
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.