After popping above a mid-channel resistance, USD/JPY looks like it’s headed for the 101.00 area. What makes this setup interesting is that the 200 SMA and an already overbought stochastic signal could put downward pressure on the pair before it even reaches the major psychological handle. What do you think? Will the dollar soon see more losses? Or can the bulls hustle some more muscle and push the Greenback higher?
This one’s for the range traders out there! EUR/CAD is now back at the 1.4650 area, which has served as resistance in late July and August and now a support since early this month. This time around the pair is also dealing with the 100 and 200 SMA on the 4-hour time frame. The cherry on top is an oversold stochastic signal. A long trade at current levels is a good bet if you think that the euro will soon gain pips on the pound. Of course, you can also wait for a break below said support levels and short the pair if you believe that it will go back down to its broken range.
Last one up for this batch of charts is a possible triangle opportunity on Guppy. The paid has just bounced from the 129.50 area, which marks the support of a descending triangle. You can buy at current levels and take profits around the falling trend line resistance if you’re one of them pound bulls. Meanwhile, waiting for a short trade opportunity around the 134.00 levels could also get you a pretty good reward-to-risk ratio if you believe that the pound will see a downside break against the yen.
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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.