I hope you’re in the mood for a break-and-retest trade because this setup is too good to miss! EUR/AUD made new yearly lows yesterday but found support at the 1.5050 minor psychological level. It’s currently testing the 1.5150 area, which is not only a 38.2% Fib but is also a previous support zone. You could place stop losses above the Fib levels if you’re confident that the pair is about to drop back down but you can also wait for candlesticks if you’re not sure about the euro gaining against the Aussie.
Here’s another retracement play for ya! USD/JPY is just above the 103.00 psychological area. What makes this setup interesting is that the level is a 38.2% Fib zone as well as a resistance area back in May 2013. Are the dollar bears done dragging the pair lower or will they hustle more muscle and go for the big 100.00 handle?
Our last setup for the day is a simple countertrend play on EUR/GBP. The pair just bounced from a falling channel floor and it looks like it’s headed higher. A strong break above .8350 could take the pair all the way to .8500. Of course, the mid-channel resistance could also hold and bring the euro back down against the pound. What do you think?
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.