Remember that bearish pennant that we spotted a couple of days back? Well, it looks like Cable has broken below the pattern. Or has it? The pair is now back to the rising trend line that it had broken earlier this week, which is also just below the 100 SMA that hasn’t been broken since November last year. Are we looking at a break and retest situation here? Or is this actually a fakeout that will push the pound back to the “pennant” resistance around 1.2500? Watch the next candles closely for clues and make sure you’re ready for whichever scenario plays out!
Here’s an interesting one for trend playas out there! EUR/USD is fast approaching the 1.0800 major psychological handle, which lines up with not only a falling trend line, but also a possible ascending triangle resistance on the daily time frame. Oh, and look at stochastic flirting with the overbought territory! Will forex bears pounce at the 1.0800 MaPs? Shorting at the earliest signs of a bounce around the area is a good idea if you’re betting on an extended downtrend for the euro. But if you’re one of them euro bulls, then you could also wait for an upside break of the “triangle” and put on your long trades as soon as EUR/USD gets past the 200 SMA hurdle.
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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.