Remember that retracement setup that I pointed out yesterday? Well, a closer look at the 1-hour chart hints that we might be seeing a descending triangle instead. Watch for a break below the 1.1185 support if you’re one of them dollar bulls. Of course, as stated in the School of Pipsology, descending triangles don’t always break to the downside. Keep an eye out in case the bulls hustle their muscle and push this pair above 1.1200!
If you love trading forex ranges then you’re gonna like what USD/JPY has in store for you! Since early February the pair can’t seem to make convincing breaks above 102.70 and below the 101.25 support. Tight stop losses below or above the support and resistance areas could get you a few quick pips if you believe that the pair is going to continue trading along the tight range. Read up on trading ranges if you haven’t tried it yet!
Our last but definitely not the last setup today is a sweet rising wedge shaping up on AUD/USD’s 4-hour chart. Rising wedges usually hint at decreasing buying pressure from the bulls, which usually cause downside breaks of the pattern. The Aussie is just at the resistance area so it could be a while before we see any breakout. Still, the Aussie bears could take advantage of the setup by placing tight stop losses above the trend lines. Meanwhile, the bulls could wait for an UPside break in case traders overcome the rising trend line resistance.
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.