Trend traders huddle up! EUR/JPY is sitting on the 114.00 area, which is right smack at the 38.2% Fib on the 1-hour chart. Not only that, but the psychological level also lines up with a falling trend line and 200 SMA retest. Think the euro is in for more losses against the yen? A short trade at current levels could get you a good reward-to-risk ratio especially if you aim for the pair’s previous lows. Just make sure you practice good risk management when trading crosses like this!
Somebody holler at Huck and tell her about this potential breakout! GBP/USD has been lollygagging on a 300-pip area after falling sharply two weeks ago. In fact, the pair is currently sporting what looks like a bearish pennant in the making! If you’ve read the School of Pipsology then you’ll know that pennants like this usually lead to more downside moves. Time to whip up your trading plans and start strategizing on how you can take advantage of the setup!
Last one for this batch of charts is a possible symmetrical triangle forming on USD/CAD’s 4-hour chart. The pair hasn’t seen a clear direction since mid-March and is now confined in the pattern. The end (of the triangle) is near though, so you might want to brace yourselves for a possible breakout in either direction.
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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.