Let's kick off the last day of the week with a potential retracement play on EUR/USD. After successfully making a new swing low, the pair looks like it's ready to pull back. It just formed a double bottom formation, which is a bullish reversal pattern. Using the Fibonacci tool, I noticed that the 61.8% level nicely lines up with the former support at 1.3320. Stochastic is starting to move up, which means the euro bulls could try to push the pair higher.
Speaking of pullbacks, GBP/USD seems to have already retraced. Price has just stalled and is now sitting pretty at the 38.2% Fibonacci retracement level. With the Stochastic showing that conditions are overbought, we just might see the bears jump in again to ride the overall downtrend very soon.
At first glance, you might think that NZD/USD is in a clear downtrend. But a look at the higher time frames would reveal that the pair's actually trending higher! As you can see, the pair is moving inside a slightly ascending channel, making "higher highs" and "higher lows." Now, the pair is testing the bottom of the channel. Given the oversold Stochastic, we could see the buyers attack the pair again. If you're bullish on the pair, watch this pair carefully! It could stage a super rally soon!
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.
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