Is that a possible reversal I spot? Why, yes it is! A shooting star had formed on the daily chart of GBP/USD and with the bearish marubozu that followed it, it could mean that the pair’s rally has come to an end. If price continues to fall, pay attention to the 1.5740 area, as that’s where the next major support level will be.
Check it out, homes! NZD/USD is currently testing support at the rising trend line. Will it hold or will it break? If you think there are enough bulls in the market to push the pair back up to .8180, you may want to wait for a bullish candlestick to materialize first before buying. Who knows, the trend line might not hold and a close below Friday’s low at .8080 could mean that NZD/USD would soon drop like a rock!
In the mood to trade the majors this week? If you are, you could take a shot at this potential retracement play on EUR/USD. The pair is heading towards the 50% Fibonacci line, which is right smack at the 1.2450 psychological handle and a former resistance level on the 4-hour chart. Stochastic also looks like it’s going for the oversold area, so you better pay extra attention if the pair reaches the 1.2450 mark! We could be in for a bounce, brothas!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.