Talk about a smooth ride! Over the past week, NZD/USD has been sliding down a tight descending channel, dropping just over 100 pips. Will the bearish move continue? The next major support levels to keep an eye on are .7950 and .7900. However, if we see a solid bullish candle close above the falling resistance line, it may be a sign that the bulls are back in business and looking to push the Kiwi back up to former highs!
Ready for a sweet Fibonacci setup? Looks like AUD/USD is about to test the 38.2% Fib level, which just happens to lineup with a former resistance-turned-support level. Stochastic is also deep in oversold territory, which could mean that the retracement may be over. Will the area of interest hold or will the Aussie continue to sink to new lows? I suggest chillin’ and waiting for some Fib-sticks to form at the support level before loading up on any positions.
Lastly, here’s a setup that I like to call the J-Lo. I’m talking about a double bottom, of course! USD/CAD is now fast approaching the neckline at .9950. If we see a solid candle close above this level, we could see a bullish run of about 100 pips, which is just about equal to the height of the double bottom formation.
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.