Is the dollar finally running out of steam?? After rallying strongly yesterday, USD/CHF seems to have taken a break. This pause could nothing be more than just a short consolidation before the pair skyrockets past .9600. However, it could also be a sign that we’ll soon see the pair trade lower and test support around the rising trend line. So, what’s your take?
If you wanna steer clear of the dollar this NFP Friday, you may want to take a look at this sexy setup on EUR/AUD. On the 4-hour chart, we see that price is currently testing support at the rising trend line. Stochastic already indicates oversold conditions too! A bounce off 1.4100 could mean that we’ll soon see the pair rally up to 1.4400. But be careful! A close below this week’s low at around 1.4050 could mean that we’ll see a drop to 1.3800!
Last but not the least, here’s a potential Fibonacci play for ya! NZD/JPY on the hourly timeframe looks like it’s ripe for a pullback. If you feel like buying the pair, waiting for it to retrace some of its gains back to the 38.2%-50.0% Fib levels may be a good idea. Reversal candles around the 78.00 handle could mean that we’ll see the rally continue, possibly up to 80.00. On the contrary, a strong bearish close below the handle could be a sign of further sell-off.
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.