Yo! Let’s end this week’s intraday charts update with a fresh channel for EUR/JPY and a Fibonacci retracement setup for AUD/CAD. Check ’em out!
If you’re having a sense of déjà vu, then that’s probably because y’all can still remember our old setup from Wednesday. Back then, we had that there head-and-shoulders pattern. And back then, we were lookin’ to go short when the pair smashes past 1.0310.
Well, check that out, dawg. As y’all can see, the pair cleared 1.0130 and moved lower for a hundred pips. And if you were able to ride that, then go ahead and congratulate yourself. Aww, yea! We got bank!
For today’s play, we’re waiting for the pair to start pulling back, so we can go short again. After all, stochastic is already signaling oversold conditions and all that. In addition, 1.0030 is a price area that has seen significant market interest in the recent past.
There’s therefore a good chance that support may form here. And if we use our Fibonacci tool, we can see that the key area at 1.0130 lies between the 50% and 38.2% Fibonacci retracement levels. We therefore have our sights on those pullback areas.
EUR/JPY has been trading ever lower while bouncing up and down inside that there descending channel. And presently, the pair appears to have found support at 117.50. Chances are therefore good that the pair may move back up again. Y’all therefore better get ready to start lookin’ for opportunities to short when or if the pair reaches the channel’s resistance area.
Given that support at 117.50 seems strong for now, however, there’s also a small chance that the pair may attempt an upside channel breakout. Although the pair needs to clear 118.70 on strong momentum before an upside breakout is confirmed. Y’all may therefore wanna prepare for such a scenario as well. In any case, just remember to practice proper risk management, a’ight?
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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.