Gather round Fibonacci fans, this one’s for you! After it appeared to be making a run for parity, AUD/USD has now retraced and is currently finding tough resistance at the 61.8% Fib level. With Stochastic now crossing over, this could be a sweet time to load up on those short positions. On the other hand, if we see a candle close above the 61.8% Fib level, it may signal that a run up to 1.0300 handle is in play.
Yo Happy Pip! Here’s a comdoll setup you might be interested in! USD/CAD has been stuck in tight consolidation the whole week, trading within an ascending channel. How long is this sucka gonna hold? For now, I suggest just waiting till price retests the bottom of the channel and forms some reversal candles before buying.
Lastly, here’s a setup for those of you who loves picking tops! Bearish divergence has formed, as price has formed a higher high while Stochastic has posted lower highs. Also, notice how yesterday’s candle closed as a doji, right smack at the .9800 psychological handle. Looking back, a doji also formed at the previous high before price dropped! Can history repeats itself? Wait for today’s candle close and if we see a bearish red candle, it may be a sign to go short!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.