Hope y’all didn’t get whiplashed with all the wild swings on EUR/JPY yesterday! Now that the dust has sort of settled on this bad boy, it looks like we can finally get back to business. Price is in consolidation at the moment, but pretty soon, it will have to decide whether it’ll bounce or break. The strong uptrend favors a bullish move on the pair, but there’s always a chance this pair may actually break its trend line. In times like this, it’s best to wait for confirmation from candlesticks. Be safe, kids!
Want a chance to trade GBP/USD? Here you go! A pennant has formed over the past two days, and we may witness it break today. Since the pennant formed after a strong vertical climb, chances are that it’ll break to the upside. If it does pop up, it may meet resistance at 1.6400, the next major psychological handle. But if sellers decide to take this pair south, they might not stop until price hits 1.6200!
*Gasp!* Is the Kiwi’s uptrend about to end? That bearish divergence on the 4-hour chart has been going on for a while, with the pair making higher highs and stochastic drawing lower highs. If Kiwi bulls run out of steam, we could see this pair break below that steep rising channel. But if any of the Fibs provide support for the pair, we might see NZD/USD make another new high past .7800!