I hope you’re up for a support-turned-resistance play! EUR/USD is back at the 1.3570 level, which had served as a solid support area early this month. Stochastic is almost at the overbought territory so we might see some bears come in and take advantage of a possible support-turned-resistance setup. We’re looking at the 1-hour chart so you can use tight stops on this one but remember that the bulls could still push the euro all the way to 1.3600 before we see significant euro weakness.
Is that a rising wedge I see? Why, yes it is! Guppy looks like it’s gearing up for a wedge breakout as it consolidates on the 1-hour chart. The pair hasn’t reached the pattern’s resistance lines so watch out for the 173.00 major psychological level in case it serves as a catalyst for the bears to break the lower trend line support. Read up on trading wedges if you’re not familiar with the pattern yet!
Remember that broken range that we identified a few days back? Well, CAD/JPY is back into it! In fact, it’s testing a mid-range support right around the 95.00 major psychological level. Not only that, but Stochastic is lollygagging in the oversold territory. Think this yen cross is headed higher? A tight stop just above the mid-range level could get you a sweet risk ratio if you believe that it’s headed for its December highs.
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.