Somebody holler at Happy Pip and point out this comdoll setup! USD/CAD looks like it’s headed for the 1.1000 major level, which is right smack at a 38.2% Fib on the 4-hour chart and a previous rising channel support. Not only that, but Stochastic is also in the overbought territory. Watch your candlesticks closely if price reaches 1.1000 and see if you can spot trades with good risk ratios from the pair’s reaction to the Fib area.
I hope you’re up for a reversal play because this one is too good to miss! Cable is sporting what looks like an evening star on the daily time frame. What makes this setup sweeter is that it’s near the 1.6800 major psychological handle and Stochastic is also popping an overbought signal. A stop just above last week’s highs could get you a nice trade if you think that the pound is in for more losses against the Greenback.
Last one up for today is a nice and simple support play on USD/JPY. The pair is currently retesting the 101.50 level, a huge area of interest on the daily chart. What’s more, Stochastic is on the oversold region. You can buy the pair with a stop just below the major support or you could also wait for a couple more candlesticks if you’re not too sure about selling the yen just yet.
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.