It looks like ranges are still in vogue for today, huh? AUD/USD’s 1-hour time frame shows that the pair is still stuck in between support around 1.0150 and resistance at 1.0300. After bouncing from the bottom of the range yesterday, the pair looks poised to test the top of the range again as stochastic is starting to crawl below the overbought region. If 1.0300 holds as resistance, AUD/USD could slide back to the bottom of the range. Make sure you place your stops properly in case a breakout happens!
Now here’s a longer-term setup for those of you who trade the Kiwi. Happy Pip spotted this potential retracement play on NZD/USD last week as she pointed out the area of interest near the Fib levels. However, a couple of dojis already formed right at that area of interest, suggesting that the pair’s rally might be over. If that’s the case, NZD/USD could fall to its recent lows around the .7500 area so keep an eye out for daily candlesticks closing below those dojis.
Last but not least, check out the double top formation on USD/CAD’s daily chart! The pair is inching closer and closer to its neckline, which is closely in line with the psychological 1.0000 mark. However, stochastic just reached the oversold zone, hinting that the pair could turn. If the downward momentum is still strong enough to trigger a break below parity, watch out for a potential 500-pip drop, which is about the same height as the chart pattern.
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.