Yo, homies! Still remember that falling channel I pointed out earlier in the week? Well it looks like the Kiwi already rallied past the falling trend line. For y’all hoping to get in on the Kiwi’s flight but at a better price, you may want to keep tabs around the .8170 area. If there’s still enough demand for NZD/USD, we could see the pair pullback to the 50% Fibonacci level and test the broken trend line for support. Just be careful! A strong close below the level could mean that the pair is headed back down to .8100.
Fibonacci junkies huddle up! AUD/USD hit a resistance wall at the 50% Fibonacci retracement on the 4-hour chart. What’s more, it’s right smack in the 1.0400 major psychological resistance. It also doesn’t hurt that Stochastic is hanging in the overbought territory. A stop above the Fib could give you a good risk ratio if you’re aiming for the Aussie’s previous lows near 1.0200.
Who’s ready for a euro retracement? On its 4-hour time frame, EUR/USD seems to be pulling back from its recent rallies as its currently edging towards the 1.3050 area. That level is closely in line with a former resistance level and the 38.2% Fib! Could 1.3050 hold as support from now on? Stochastic is still pointing down, suggesting that euro bears have enough energy to take the pair further south. Be careful when trading this one!
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.