Break it down like Usher! Late last week, we saw a definitive break of the rising trend line on EUR/USD. Normally, this means that price will head even lower, but from the looks of things, price may pull back first. The pair just found a floor below 1.2500 and is starting to make its way to major Fibonacci retracement levels. If you dare to go against the trend, you may want to jump in right now and hope that the bulls will be able to take the pair higher. But of course, it’s always best to go with the trend, so waiting for price to test the Fibs and selling is still safer!
Take a look at that awesome setup on GBP/JPY! The pair now faces a crucial decision as it tests the 61.8% Fibonacci retracement level and the medium-term rising trend line. Will price turn or will it finally bust through the support? If it does head higher, it will probably head to the most recent swing high at 126.00. If it heads down and closes below the rising trend line, it may fall back down to the 122.00 level.
AUD/USD has been falling down the charts after finding major resistance around the 1.0200 area. However, it seems that the pair’s sell-off has now come to an end as it just bounced off the very significant 1.0000 level. In addition to this, price was unable to go below the 38.2% Fibonacci retracement level and the Stochastic show that conditions are severely oversold. Keep a close eye on this pair folks, as it could be revving up for a bullish run.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.