Loonie bulls, watch out! If you’re long CAD/JPY, let me warn you that the pair is testing a significant resistance level at the 101.00 major psychological mark. At the same time, stochastic is indicating overbought forex conditions, which means that sellers are gaining energy. If they are able to take control of price action, CAD/JPY could fall back to the bottom of the range that’s forming on the 1-hour chart. A test of support at the 99.30 area could be in the cards or at least a move until the middle of the range around the 100.00 major psychological level.
If you think the trend is your friend, then you should definitely have a look at this potential uptrend play on GBP/AUD’s 1-hour forex chart. The pair is on its way to test the rising trend line and the 61.8% Fibonacci retracement level, which coincide with the previous resistance near the 1.8400 major psychological mark. Stochastic is supporting a potential upside move, as the oscillator is also starting to head north and indicate a pickup in buying momentum. In this case, GBP/AUD could make its move back to the previous highs near the 1.8700 handle.
Is USD/CHF about to turn? Although the pair has been climbing steadily recently, it is currently stalling right around the top of the rising channel forming on its 1-hour time frame. Countertrend forex traders might want to jump in a short setup, as stochastic is giving the overbought signal and hinting at a potential move back to the channel support near the .9650 minor psychological level. Do watch out for a potential upside breakout though, as the recent rally has been pretty sharp and dollar bulls might have enough energy to push past the .9800 mark!
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.