GBP/JPY has found support since its dip to the 1.4050 area last week and looks like is headed for its previous highs. The 155.00 major psychological handle could pose some threat to the bulls, especially since it’s also near a 38.2% Fib, 200 SMA, and previous support on the 1-hour time frame. Will the bulls tear through the resistance area, or will the bears step in and extend the pair’s downtrend?
Kiwi bears huddle up! NZD/USD is having trouble reaching a channel resistance after hitting an area near its previous highs. Stochastic is also on the bears’ side in this case with an overbought signal on the 4-hour chart. A short trade at current levels could get you a good reward-to-risk ratio if you aim for the support levels. Of course, you could also wait for the pair to make new highs and enter a long trade if you’re one of them Kiwi bulls.
Can’t get enough of the pound? Here’s another one for ya! GBP/CHF got rejected at the 1.3450 levels and is now lollygagging just below the 1.3650 levels. The 1.3700 handle is a good area to watch for the bears, as it’s right smack at a falling trend line, 50% Fib, and 100 SMA retest. Not only that, but stochastic is also sporting an overbought signal. Think the pound is about to lose more pips on the franc? Keep close tabs on this one and work on planning your trade strategies!
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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.