If you've been lookin' to pick a top on EUR/JPY, this might be the signal that you've been waiting for! It appears that the pair is forming some bearish divergence on the daily chart, as Stochastic has formed lower highs while price just set a new high. Considering that yesterday's candle finished with a bullish marubozu, I suspect we could still see some strength from the bulls. Keep an eye though, on that 105.00 handle homies! It may just prove to be a solid resistance point!
This one's for all you intraday traders! The bears have been in control lately, as they've dragged price down from its highs. Currently, it seems that price is finding resistance at the 50.0% Fibonacci level. If this continues to hold, I wouldn't be surprised if the bears push price back down below the 1.3000 mark!
Last up, here's my take on the Kiwi. NZD/USD seems to have settled into a descending channel, with price currently chillin' right smack at the middle. If you're in the bull camp, a solid candle close above the .8200 handle would be a sign that the channel has been broken. On the flip side, we could see the pair fall before finding support at the bottom of the channel at around .8090.
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.
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- Daily Chart Art - July 6, 2012 21:21 05 July 2012