Range traders huddle up! EUR/GBP is lollygagging at the .7550 minor psychological area, which lines up nicely with a previous resistance area and a support that’s been valid since mid-January. Not only that, but Stochastic also looks like it’s about to turn from the oversold territory. A long trade at current levels could get you a good trade if you aim for January’s highs. Just make sure you make enough allowances for currency cross volatility, aight?
Next up is a nice and simple Fib play on Cable. As we’ve identified last week, the 1.4500 area could be a hot level for the pair, as it’s near the 50% Fib, 200 SMA, and area of interest on the 4-hour time frame. If you’re a fan of oscillators, then you should also note that Stochastic has just started visiting the overbought territory. Will the pound see more losses against the Greenback? Read up on using Fibs on entering trend trades if you haven’t tried Fib trading yet!
I spy with my Ray-B-covered eyes a potential bounce for USD/JPY! A quick check on the daily time frame shows us that the 121.50 handle is a tricky one for dollar bulls and bears. Not only is it a solid area of interest since November 2014, but it’s also touching the 200 SMA just after it has crossed above the 100 SMA. Heck, it’s almost at a falling channel resistance, too! The cherry on top of this bearish sundae is an overbought Stochastic signal. Think the 121.50 handle would do it for the bears?
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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.