Anyone watching this pair? I know Pipcrawler is! He’s been keeping a close eye on the 61.8% Fibonacci retracement level as it lines up nicely with a medium-term rising trend line.If this level holds, which looks like it will given how the Stochastic is slowly moving out of oversold territory, we could see the pair post new highs.
Yesterday, I pointed out that AUD/USD could fall due to the bearish flag. Unfortunately, I was wrong as the pair actually broke out to the topside and tested the support-turned-resistance level at 1.0550. It was well-defended by the bears, which resulted in the pair dropping again. With the Stochastic and price both pointing down, it looks like we’ll see the pair test former lows around the 1.0450 area.
If you’re a fan of the Fibonacci tool, then you’ll love this setup on USD/JPY! As you can see, the pair just tested the 38.2% Fibonacci retracement level and is ticking higher. If you’re bullish on the pair, then now is a good time to consider buying since the Stochastic has just moved out of the oversold region and is moving higher.
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.