This Fib setup on EUR/USD is as fresh as the wax on my brand new whip! After sinking to a recent low at 1.2630, EUR/USD has retraced back and is now knocking on the door of the 38.2% Fibonacci level at around 1.3244. Now that a bearish marubozu candle has formed and we’re seeing some bearish divergence, I think it might be time to kick this pair to the curb! Be on the lookout for more red candles as a confirmation that the sellers are back in control!
Remember that channel I pointed out late last week on NZD/USD? Well, it turns out that the rising support line held quite well! The Kiwi bounced off the bottom of the channel and is now back up above the .8300 handle. If you think the Kiwi bulls are about to set the roof on fire, then it might be time to crank up those long positions!
Last up, here’s one for all my lovely fans from Down Under! AUD/JPY has been on a sweet up trend lately, climbing all the way up from the 75.00 handle. However, this could be the end of the line for AUD/JPY, as bearish divergence has formed. In addition, we’re seeing a very strong bearish candlestick, as a marubozu has formed. I suggest waiting for another signal – like the formation of three black crows – before putting up any short orders.
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.