Check out this hot continuation setup! EUR/AUD looks like it’s consolidating in a bearish flag after falling sharply in March. Is the Aussie done with its rally or are the euro bears just taking a breather? Bearish flags tend to be continuation signals but watch this one closely in case the pair breaks to the upside anyway.
If you’re one of them Kiwi fans, then this setup is for you! NZD/JPY just hit a possible support near a 50% Fib, former resistance and a rising trend line retest. Not only that, but Stochastic is also in the oversold territory. A stop just below the trend line could get you sweet pips if you believe that the pair is headed for new 2014 highs.
Here’s another one for the yen bears! EUR/JPY is about to hit its mid-channel support at the 142.50 area. What makes the setup interesting is that the level is near a 38.2% Fib and area of interest for the pair. Even Stochastic is about to hit the oversold area. Placing your stops below the mid-channel zone is a good idea if you’re planning on buying the euro. Of course, you could also wait for a couple more bullish candlesticks or for Stochastic to actually leave the oversold region if you’re not sure about selling the yen.
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.