Aha! It looks like the bears turned out to the victorious ones in yesterday’s trading session as they were go for another test of the ascending trend line. Will it hold or will it break? With the Stochastic showing that conditions are oversold, it seems that the bulls may be able to fight back. But it’s really too early to tell though, so it’d be best to wait for confirmation before committing to a position!
A couple of weeks ago, a major rising trend line was broken in USD/CAD. Since the break, USD/CAD has been selling, but now, with price action stalling and the Stochastic at severely oversold territory, it looks like a pullback is in the cards. If you’re part of the bear camp, be extra careful today as the pair could possibly retrace to the Fibs that I drew.
I don’t know about you but it seems that EUR/USD is going to go up, up, and away! As you can see from the chart I posted, EUR/USD managed to convincingly break the 1.3100 major resistance and psychological level. In addition, the pair has formed “higher lows,” which suggests that the bulls are truly in control. If the bulls continue pushing the pair higher, we may see it touch 1.3300 before it encounters resistance.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.