EUR/JPY is currently lollygagging just below the 115.50 minor psychological handle, which lines up with the 100 SMA on the 1-hour time frame. Will we see a bounce at the level? Or will the pair still bounce down to the 38.2% Fibonacci retracement around the 115.00 major psychological area? A long trade at current levels is already a good idea if you’re expecting the pair to bounce, but you can also wait for a deeper retracement and a couple of confirmation candles if you’re not too sure that the euro will see upside momentum in the next candles.
Here’s another trade for yen warriors out there! NZD/JPY bears are hitting a roadblock around the 73.75 area, which is right smack at a rising channel support AND a 200 SMA on the 1-hour time frame. Stochastic isn’t helping much though, as it has already left the oversold territory. Buying at current prices could still make for a good trade especially if you believe that the pair will revisit its previous highs. Just make sure to use wide stops, aight? Yen crosses like these tend to be more volatile than most major pairs, after all.
Can’t get enough of trend trades? Give this one a shot! NZD/CAD is having trouble breaking above the .9500 psychological handle, which also happens to line up with a falling channel resistance AND the 100 and 200 SMAs on the 1-hour chart. A stop just above the channel and the pair’s previous highs could make for a good trade if you think that the Kiwi will reach new lows against the Loonie. Of course, you could also wait for a break above the channel and said resistance areas if you’re one of them Kiwi bulls. In any case, make sure you’re using good risk management practices while trading your biases.
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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.