Do you see what I see? AUD/USD is now testing resistance at the top of the falling channel on the hourly chart. Will resistance hold or not? Err, I’m not sure either. But what I do know is that I’ll be on my toes for candlesticks! A bullish candlestick (i.e., marubozu) could signal that the pair is headed higher. Meanwhile, a strong bearish close at the trend line could mean that the pair is on its way down to 1.0200.
My, oh my! Are those a pair of double bottoms I see on the 4-hour chart of NZD/USD right smack at the major support level at .8200? Groovy, baby. You probably know from the School of Pipsology that this chart pattern is typically considered as a bullish signal. If there are enough Kiwi buyers in the market, we may just see the pair skyrocket to .8500. But be careful, ayt? A strong close below .8200 could hint that NZD/USD is headed to .8000.
Lastly, here’s EUR/GBP sportin’ what looks like a rising wedge on the hourly timeframe. If you’re feeling bearish on the pair, a break below the consolidation could mean that we’ll soon see it test its previous resistance at .8675. However, if the euro still has enough fuel in its tank, the pair could make a run for .8800. If I were you, I’d watch out for candlestick patterns!
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.