If you missed the resistance-turned-support situation that we spotted a couple of days back, then here’s your chance! AUD/JPY is back at the 87.00 area after hitting above 88.00 earlier this week. What makes the retest hotter than lava today is that stochastic is also popping up an oversold signal. Will Aussie bulls defend the previous range resistance level again? Buying at current levels is a good play if you think that AUD/JPY will make a play for its previous highs. Just make sure you use wide stops and practice good risk management habits when you jump in on this one, aight?
Breakout alert! Cable’s lollygagging has led to the pair slowly but surely breaking above a trend line that has been serving as area of interest since early 2016. If you think that the pair is about to take off and turn the trend line and 100 SMA into support areas, then you best watch out for the 1.3000 major psychological level as a possible profit target. But if you’re one of them trend playas, then you can take advantage of the 100 SMA retest or even wait for a 200 SMA test before targeting the 1.2000 previous lows for profits.
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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.