Awww, snap! I think I spy a rising wedge right smack on the 38.2% Fibonacci retracement level of EUR/USD. But wait, there’s more! If you’re feeling bearish for the pair, you probably also like Stochastic being in the overbought territory. As I always say though, don’t get too excited. Who knows, there may still be enough buyers in the market to push the pair up to 1.3000.
Next up, here’s NZD/USD sportin’ what looks like an inverse head and shoulders on the 4-hour timeframe. If you’re planning to go long on the pair, it might be a good idea to wait for a strong break of neckline resistance at the .8200 handle just to be safe. Reversal candlesticks around the area could mean that the pair is headed back down to .8050.
Last but certainly not the least is EUR/GBP on the hourly timeframe. The pair has been making lower highs and highers lows, forming a symmetrical triangle. Graduates of the School of Pipsology know that this chart pattern usually signals an impending breakout. Which side will you take? If you plan on rooting for the bulls, keep tabs on the area around yesterday’s high at .8055 as an upside break could signal that the pair is on its way up to .8150. Meanwhile, if you’re on the side of the bears, a strong close below yesterday’s low at .8030 could hint that EUR/GBP will soon drop down to .7970.
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.