We’re kicking off with this simple setup on Cable! The pair is forming what looks like a symmetrical triangle on the 1-hour chart. If you’ve read your School of Pipsology, then you’ll know that it could lead to a breakout in either direction. Looks like you’ve got a bit of time here though, so you might want to whip up your trading plans and prepare for different scenarios on this one.
Remember that double bottom setup that we were looking at on USD/CAD’s chart? Well, it looks like the bulls have a dragon to slay if they want to see a reversal. More specifically, they’ll need to get past a falling trend line resistance, which is also near a 100 SMA on the 4-hour time frame. A break above the level could send the pair back to its early February levels, while a bounce could inspire a retest of the 1.2950 support. Which side are you on?
Here’s one for the trend warriors! EUR/JPY is testing the 126.50 minor psychological handle, which is right smack at a rising trend line support AND 100 SMA on the 4-hour chart. Even stochastic is on the bulls’ side with an oversold signal. A long trade at current levels could get you a good reward-to-risk ratio. Just remember to keep your stop losses wide! Yen crosses like this one tends to be more volatile than the majors and could take you out before the setup plays out if you use tight stops.
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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.