Breakout alert! EUR/USD has broken above an ascending triangle to test the 1.0700 mark, but is now back at the triangle’s previous resistance area. Are we looking at a resistance-turned-support situation here? The 1.0600 – 1.0625 zone has served as an area of interest in December, and is now made more attractive by the 38.2% Fibonacci retracement and the SMAs that are just below the level. Oh, and check out stochastic chillin’ like a villain on the 1-hour time frame! A long trade at current levels could get you in on EUR/USD’s uptrend pretty early. However, if you’re not too sure about the euro’s strength, then you could also wait for the pair to either retest the 50% or even the 61.8% Fib levels or gain some bullish momentum before placing your long orders. Just make sure you practice good risk management when you do!
I spy with my cool, blue eyes a double bottom in the making! EUR/CAD is having trouble breaking below the 1.3880 – 1.3900 area, which had served as support back in December. What makes the setup more interesting is that the “neckline” lines up with a long-term range support that the pair had broken in November. The cherry on top of the sundae is a bullish divergence on the daily time frame. Read up on trading double bottom patterns like these if you haven’t tried trading ’em yet!
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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.