With EUR/USD making “higher lows” but “lower highs,” it appears that a rising wedge is starting to form. A rising wedge is normally considered as a breakout pattern, but in this case I think the pattern still has a few days to go. EUR/USD hasn’t consolidated at the tip yet, which means we could see the pair bounce around the boundaries first.
NZD/USD is currently at a crossroad as it sits at a major support level. Will support break down and give the chance for the bears to push the pair down to the next support level at .7850? Or will it hold and help the bulls take the pair back up to the former swing high? Since there is no clear indication as to where the pair will go next, it might be prudent to wait for confirmation signals first. If the pair convincingly closes below .8050, it suggests that the bears have prevailed. On the other hand, if reversal candlestick patterns emerge, it means that the bulls are in charge.
Are you a trend trader? If you are, then you’re going to love long-term buy setup on AUD/USD! After making a new swing high a week ago, AUD/USD is starting to retrace its step and move lower. If this move down keeps on going, price will eventually test the rising trend line support, which will give the bulls another chance to jump in long! After all, the rising trend line does coincide nicely with the area between the 50% and 61.8% Fibonacci retracement levels.
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.