New month, new trend for USD/JPY? The pair just traded above a falling channel resistance that hadn’t been broken for most of February. Not only that, but it also went through the 113.00 major psychological handle AND the 100 and 200 SMAs on the 1-hour chart. Will the dollar aim for February’s highs? Or are we looking at a fakeout situation over here? Stochastic is chillin’ in the overbought region, so best be on your toes if you have a long dollar trade on or are looking for opportunities to short the scrilla!
Trend setups not your thing? Here’s a range play for ya! EUR/CHF looks like it’s about to bounce from 1.0635, an area that has been serving as support since late January. What makes the setup even more interesting is that stochastic is also about to leave the oversold territory. Buying at current levels and aiming for the range resistance around 1.0680 is a good play if you’re planning to catch good reward-to-risk ratios. Just don’t choke your stop losses, aight? Currency crosses like these can see volatility like nobody’s business!
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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.