After partying like it’s the end of the world last week, the euro bulls seem to be losing momentum just below the 1.1000 psychological area. All hope is not lost though, as the pair looks like it’s forming a bullish pennant on the 1-hour time frame. Will the hesitation lead to continuation for the euro? A long trade could be a good idea once you’ve confirmed a break above the 1.1000 handle. Just make sure you read up on trading breakouts while you wait for a trade opportunity to emerge!
Here’s another euro setup for ya! Remember that range that we’ve been looking at last week? Well, it looks like the pair did bounce off the .7000 area after all. Right now the pair is having trouble breaking above the mid-range resistance, which is right around the .7200 major psychological handle. Not only that, but Stochastic is also sporting an overbought signal. A stop above the mid-range area could make for a good trade if you think that EUR/GBP is headed back down to the .7000 lows. On the other hand, you could also wait for some momentum higher and go for a long trade if you think that the euro could head for .7450 after lollygagging at its current levels.
Here’s one for trend traders! Though a quick look at USD/CAD’s shorter time frames suggest possible ranges, zooming out to the 4-hour chart tells us that the pair’s uptrend is still very much intact. In fact, it’s currently testing not only the rising channel support, but also the 100 SMA that has served as support since early November. Stops just below the support levels is a good idea if you think that USD/CAD is gunning for new highs. Of course, you could also wait for a break below said levels and trade a downside breakout if you think that the dollar has had enough gains against the Loonie.
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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.