Aussie bulls were large and in charge yesterday, but AUD/USD looks as though it might belong to the bears today! If you pull out your 4-hour chart, you’ll probably be surprised to find that this pair is right below the 1.0800 major psychological handle. A bearish divergence seems to be forming and this could be a sign that bears are ready to step in and take control once again.
Why hello again, Ms. J-Lo! I just can’t seem to get enough of lovely double bottom formations! Yesterday’s sharp USD/CAD selloff had the pair tumbling down the charts, and now it looks as though it’s only a matter of time before price retests .9500. This may be a good place to buy the pair since it held well as support in the past. But don’t dive in just yet! USD/CAD has been very bearish as of late and it may just form new lows. To avoid getting pummeled by a breakout, it’s best to wait for reversal patterns to form in our marked support area.
Revisiting Cable, we can see that this bad boy went on quite a rampage yesterday, blowing right through some key resistance levels. But it’s anything but clear skies ahead for pound bulls. They’ll soon be facing stiff resistance in the form of a long-term falling trend line and a former support and resistance area. As you can see, Stochastic is already deeply overbought so it might not be long before we see a turnaround.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.