Retracement alert! USD/JPY just got rejected at the 103.25 area, which lined up nicely with the 50% Fib, 200 SMA, and a falling trend line on the 4-hour chart. What’s more, stochastic is also about to leave the overbought region. Think the dollar is about to lose more pips on the yen? A short trade at current levels could make for a good trade especially if you aim for the previous lows. Of course, you could also wait for the pair to break above said resistance levels if you’re one of them dollar bulls.
I spy with my cool, blue eyes a double bottom in the making! GBP/CAD just bounced (again!) from its weekly lows near the 1.7200 major psychological handle. The 1.7600 level seems to be the potential neckline in this case, so watch out for a bit of a tug-o-pips around the area. Right now an oversold stochastic signal as well as a bullish divergence are making it easy for the pound bulls to attack. Will it lead to an upside breakout for the pair though? Watch this one closely, folks!
Last one is a lil’ something for the trend warriors out there. EUR/USD is bouncing from the 1.1000 area, which coincidentally lines up with a rising channel support AND the 200 SMA on the daily chart. A long trade at current levels and a profit target around the previous highs could get you a good reward-to-risk ratio. Just make sure you practice good risk management, aight? You never know when the bears could pounce and drag this pair lower!
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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.