Is it time for the Aussie to rise from its ashes? After all, the pair formed a hammer just above key support at 1.0175 and has now formed a three-bar turn as well. With Stochastic crossing over out of oversold territory, the bulls may come back in force and push this pair to back up to retest the top of the range at 1.0570!
Could this be the last call for the euro bulls? EUR/USD is now stalling at the major psychological level of 1.3000, even forming a couple of long wicked candles. Stochastic is now in oversold conditions, but who knows how long that will last! If we see a bullish marubozu candle form soon, that could be the signal for all of you in the long euro camp to hop on the bandwagon!
Lastly, here’s a look at the 4-hour chart of NZD/USD. The pair is currently testing a former rising trend line, which just so happens to line up with the 38.2% Fibonacci retracement level. Let’s see if this former support level can hold off the bulls this time as a resistance this time around! Be on the lookout for some reversal candlesticks as a sign to load up on some short positions!
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.