Man, oh man! It seems like the euro bears are running out of steam and might need to take a breather from the recent sell-off. The pair is currently making its way back to 1.2500, a level that has served as support before. When I drew the Fibonacci retracement levels, I spotted that the 1.2500 level also lines up nicely with the 38.2% Fib. Could the bears start selling again there?
With how strongly the dollar has been performing, sometimes you just can’t help but look for signs of reversal. If you look at Cable’s weekly chart, this is exactly what you’ll see. Cable, after dropping for FIVE consecutive weeks, is facing a major support level at the 1.5300 major psychological level. The pair hasn’t shown any signs of reversal yet but the Stochastic shows that conditions are oversold, hinting that the bears could be running out of steam.
I spy with my pippin’ eye a falling trend line on EUR/CAD! Sellers had been in control of this pair for a long time now, but buyers have been putting up a fight in the last few days. Will the falling trend line be tested again? If it does, then the bears and other late sellers could have a chance to jump in and dominate!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.