Check out cable inching towards the 1.5900 handle yet again! That level has acted as strong resistance for the past couple of weeks while the 1.5650 minor psychological level has held as support. With stochastic still moving up and with the pair just a few pips shy of the 1.5900 mark, the question is: Will resistance hold or fold? If the pair turns upon reaching the 1.5900 level, it could be headed back south, all the way down to 1.5650. But if we see an upside breakout, the next area of resistance seems to be at 1.6000.
If you’re bearish on the Aussie, then here’s a setup you wouldn’t want to miss! AUD/USD seems to be forming a falling channel on its 4-hour chart as the pair formed lower highs and lower lows recently. After dipping to the bottom of the channel, the pair looks ready to retrace to any of the Fib levels, which are closely in line with major and minor psychological levels. Unless the pair breaks above the 61.8% Fibonacci retracement level, it could resume its downtrend and slide back to the bottom of the channel.
As Happy Pip pointed out in her latest trade idea, NZD/USD has been pacing back and forth between support around .8100 and resistance near .8250. The pair just made a strong bounce off support and even formed a couple of dojis to boot! But is the rally strong enough to reach the .8250 level again? Stochastic is nearly in the overbought zone but it looks like Kiwi bulls still have enough energy to take the pair higher. Watch out for a potential reversal at the top of the range though!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.