Retest alert! As you can see on the chart, EUR/USD recently broke a rising channel support and tested the 1.1125 levels. It’s back at the 1.1250 area though, which is right smack at the broken channel support and a falling trend line resistance on the 1-hour time frame. Think it will lead to more losses for the euro? A bounce from the trend line could drag the pair back to the 1.1125 lows, while a jump higher could take it back to its previous uptrend and onto its previous highs.
Guess who’s back, back again! Clue: it’s not Slim Shady. It’s CAD/JPY, yo! The pair is back at the 78.50 handle, which is a retest of a broken triangle resistance that the pair had recently broken. What’s more, the pair is also sitting near a potential SMA crossover. Are we looking at a resistance-turned-support scenario in the making? Buying at current levels could get you in on a potential uptrend early, but you could also buy at new monthly highs if you’re not sure of the Loonie making another bounce against the yen.
Much like in the CAD/JPY chart, EUR/JPY is also retesting an area of interest that it recently broke. This time around it’s sitting at the 114.00 major psychological handle, which lines up with a 61.8% Fib retracement and a retest of the broken symmetrical triangle resistance. Oh, and check out stochastic popping up an oversold signal! A pop higher could take the pair back to its 116.00 highs while a break below the 114.00 handle could take the pair back to its 112.50 lows. Keep close tabs on this one, will ya?
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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.