If you can’t get enough of the yen, then here’s one for ya! After bouncing from the closely-watched 100.00 mark, USD/JPY looks set to revisit its previous support levels. The 102.00 is a good place to look at since it lines up with not only the falling trend line but also the 100 and 200 SMAs and the 50% Fib on the 1-hour time frame. Think the dollar will go up that far? Orders at the Fib levels could make for a good trade if you think that the dollar will go back to test new lows against the yen. You could also wait for a break above said resistance levels and wait for an upside breakout if you believe that the Greenback bulls are set to pounce this week.
Countertrend alert! AUD/USD just got rejected at the .7600 area, which was right smack at a rising channel resistance on the 1-hour chart. What makes the setup more interesting is that stochastic is just about to leave the overbought area. The Aussie bears could sneak in a pip or two by shorting at current levels and taking profits around the channel support area. If you aren’t into countertrend trading though, then you could always wait for consolidation and then a bit of momentum around the mid-channel area and 100 and 200 SMAs before buying into the uptrend.
Breakout or fakeout? Last Friday USD/CHF has broken above the .9800 major psychological level, which lines up with a falling channel resistance on the 4-hour chart. Think the pair has broken above the pattern? Or are we just seeing a fakeout in the making? A move above the .9900 could confirm a breakout while a bounce lower could entice some of the dollar bears to sustain another bearish momentum. Watch this one closely, folks!
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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.