Heads up, homies! AUD/USD is on the fast track to the .9500 handle! Not only does this level line up almost perfectly with last Friday’s close, but it also intersects with the pair’s falling resistance. Think it’ll hold? Consider opening up a short position and aim for the previous low. However, if you think the bullish momentum on AUD/USD will carry it higher, wait for a clean break above the channel before going long.
Tired of selling the Greenback? No problemo! USD/CHF is lollygagging at the .9250 handle, which is right around the pair’s intraweek support. And get this – a bullish divergence is popping up on the 1-hour chart! Think twice before you buy though. I’m also seeing higher lows on the pair, which could materialize into a descending triangle faster than you can say “pips!”
Is that a pullback I see? It’s quite possible! After selling off for three straight trading sessions, it appears that NZD/USD has managed to pare its losses. Now, price is testing .7900, a major psychological level and a key resistance level. With Stochastic showing that conditions are overbought, we could see the bears step in again and take the pair lower. If you’re part of the bear camp, watch this pair carefully, as it could stage a dive 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.