Downtrend alert! The euro bulls and bears are battling for supremacy around a falling channel resistance on the 1-hour chart. What’s more interesting is that it’s right below the 1.3700 major psychological handle. Stochastic isn’t sporting a sell signal right now so watch this pair closely to see if the setup holds or if the bulls manage to push the pair firmly above 1.3700.
Too excited to short the Aussie to wait for deep retracements? No problem! There’s an opportunity to short around the .8800 psychological level, which is near the 61.8% Fib on the 1-hour chart. Of course, you could also short at the 50% Fib in case the bearish divergence that I’m seeing plays out before it reaches .8800. In any case, the comdoll is already near the possible inflection points so don’t keep your eyes from this setup!
Last one up for today is a potential resistance near GBP/JPY’s 170.50 minor psychological level. What makes it more interesting is that it’s also near a mid-range resistance on the 1-hour chart. What do you think? Is this pair headed lower or will it test the setup’s top at 173.00 before the sellers jump in?
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.