First up is a nice and simple trend play on USD/JPY. The pair is testing the 101.50 minor psychological handle, which lines up with a rising trend line support on the 1-hour time frame. What’s more, stochastic has just left the oversold territory. Think the Greenback is in for a bounce against the yen? Buying at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs. Just make sure you leave enough room for yen-related volatility!
Here’s one for breakout traders out there! After breaking above a falling trend line resistance, EUR/GBP fell back to the .8450 psychological handle. This isn’t surprising given that the level lines up with not only a 38.2% Fib retracement, but also an SMA crossover on the 1-hour chart. The cherry on top of this bullish sundae is an oversold stochastic signal. Will the euro soon gain on the pound? Watch this one closely, fellas!
USD/CAD just bounced from the 1.3100 major psychological handle, which is right smack at a previous resistance level that also lines up with a falling trend line of a symmetrical triangle. Is the dollar in for more losses against the Loonie? Stochastic is just about to leave the overbought territory, so you still have enough room to jump in if you think that the Greenback would retest the triangle support. Watch out for the SMAs though, as the bulls could use these moving averages as excuses to turn price action back around and even push the pair into a break higher.
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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.