The rally stops here! EUR/GBP seems to be having trouble heading further north past the .8500 major psychological resistance level, which happens to coincide with the 38.2% Fib on the daily time frame. Aside from that, it’s also in line with a former support area. With stochastic indicating overbought conditions, euro bears might pounce soon and push this pair back to its former lows around .8350.
Check out parity holdin’ like a boss for AUD/CAD! The pair has staged a strong rally for the past couple of months but it appears to be encountering resistance at a former support level. This area is right in between the 50% and 61.8% Fibonacci retracement levels on the daily time frame, too. Stochastic has already reached the overbought area but y’all better wait for it to start moving down if you plan to short!
Now here’s a pair that’s still in the process of retracing. GBP/NZD has been selling off pretty aggressively lately, but it appears that pound bears need to take a quick break. The 4-hour time frame shows a potential retracement play to the 1.9200 major psychological mark, which happens to align with the 38.2% Fib. Stochastic is starting to move lower, which means that sellers are itching to push this one back down again.
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.