Here’s one for the dollar bears! USD/CAD broke below its falling channel yesterday but had found support at the 1.0950 psychological level. Will the bulls get momentum or are the bears just taking a breather? The 1.1040 area looks good for a retracement as it’s near the Fib and broken channel support. Read up on trading Fib retracements if you haven’t tried it yet!
Breakout alert! Yesterday USD/JPY had broken above not only its 102.70 resistance but also the 103.00 major psychological handle. Are we seeing a legit breakout or merely a fakeout? A stop just below the broken resistance levels could get you a good risk ratio if you believe that the Greenback is headed higher. On the other hand, you could also wait for candlesticks to drop below the psychological levels before jumping on a short trade if you’re one of them dollar bears.
Here’s another trend setup for ya! EUR/GBP is knockin’ on a rising channel resistance around the .8300 psychological zone. You could wait for a breakout above the channel if you think that the euro is about to zoom higher but you could also wait for a retracement to the mid-channel support if you think that the euro bulls have exhausted their plays for now.
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.