Breakout alert! EUR/GBP is currently consolidating at the .7750 minor psychological level, which lines up nicely with a range resistance on the 1-hour time frame. What’s more, Stochastic is also flashing an overbought signal. It’s a make-or-break game for the bulls and bears! A short at current levels could give you a good reward-to-risk ratio, especially if you aim for the range support. On the other hand, you could also wait for an upside breakout if you’re one of them euro bulls. Keep close tabs on this one!
Here’s a pullback play for ya! After hitting resistance at the .6750 level, NZD/USD has gone back down and is headed towards the .6550 area. What makes the level interesting is that the potential support is near a broken resistance and the 61.8% Fib on the 1-hour chart. Think the Kiwi is in for a bounce? Read up on using Fibs to enter forex trades if you haven’t done it yet!
Remember the descending triangle that we were looking at yesterday? Well, the pair did see a downside breakout! Right now it’s heading fast towards the 128.50 levels, which, like in our NZD/USD setup above, lines up with a broken resistance and a 61.8% Fib. This time Stochastic is also thrown into the mix with an oversold signal on the 4-hour chart. Will the euro bulls step up or will the bears push for a move to EUR/JPY’s previous lows?
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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.