Remember that range we visited a couple of days back? Well, it looks like EUR/USD did bounce from the resistance! This time around the pair is lollygagging at the range support around the 1.1050 minor psychological handle. What’s more stochastic is flashing an oversold signal! Think the euro is about to change its tune against the Greenback? A long trade at current levels could get you a decent trade especially if you place your stops just below the range support. On the other hand, you could also wait for a downside breakout if you’re one of them euro bears.
Trend alert! A quick look at Cable’s short-term time frame reveals a possible uptrend in the making. See, a rising channel is forming on the 1-hour chart and is possibly supported by the 100 SMA just crossing above the 200 SMA. What makes this setup interesting is that stochastic has also just left the oversold area. Going long at market could still get you in on the bullish action. Just make sure you place your stops well below the channel and SMA support levels!
Last one up for this set of charts is a sweet retracement play, this time on USD/JPY. The pair is having trouble breaking past the 105.75 area, which is right smack at a 50% Fib and previous support level. What’s more, we’re starting to see dojis and spinning tops on the daily time frame, which usually signals that there aren’t any more buyers left and that a reversal might be in the works. Pay attention to this one, brothas!
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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.