Stop right there Kiwi bears! After showing unbelievable weakness against the Greenback yesterday, the Kiwi seems to be displaying some strength. The Kiwi just found significant support at .7850, and is starting to make its way higher. If you’re a range trader, now is a good time to consider buying, as the bulls could take the pair back up to .7950.
Next up, I’ve got a potential support-turned-resistance setup on the 1-hour chart of GBP/USD. As you can see, price is quickly approaching the 1.5550 level, which had served as major support in the past before it broke. What’s more, the level is also near the 50% Fibonacci retracement level. If price makes a bullish rally to 1.5550 once again, we might see the bears jump in and push the pair back down to former lows around 1.5500.
If you’re bullish on USD/CAD and wondering if you should switch sides… Don’t! USD/CAD, after it had bounced off the 38.2%, has been slowly climbing. The pair seems to have a lot of room left to go up as the next major resistance level is more than 100 pips away. The bulls also have momentum on their side as the Stochastic is pointing up and has yet to hit the overbought territory.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.