First up is an update on yesterday’s EUR/JPY setup. Since price found support at the “neckline,” it’s worth exploring that the pair might be on a range instead. In fact, the euro looks like it’s headed for the 142.00 psychological area near a mid-range resistance. Stochastic hasn’t reached the overbought region yet so we still have time to watch the euro’s price action and confirm a move higher and then make a trading plan in case it encounters resistance at the 142.00 levels.
If you’re into European currencies then you’re gonna like this potential mid-channel bounce on EUR/GBP! The pair is having trouble breaking below the .8250 area, which is in line with a mid-channel support on the daily time frame. Stochastic is supporting the bulls in the oversold territory but it hasn’t shown signs of going up just yet. Be careful in taking a countertrend trade on this one, brothas, especially since the 100 and 200 SMAs are still in favor of a downtrend.
Wondering why AUD/USD is hitting the roof like there’s no tomorrow? One look at the daily chart tells us that the pair’s next major inflection point above the .9300 psychological handle is around the .9700 area. You could still get on the Aussie’s new direction if you aim for the major inflection point with a decent reward-to-risk ratio. Also keep an eye out for the 100 SMA crossing above the 200 SMA, as it could indicate a longer-term uptrend for the Aussie.
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.