Bottoms up! I spotted a possible double bottom formation on AUD/USD’s 4-hour chart and it just might break out today. To do that, the pair must close the weekend gap first and climb above the neckline around 1.0400. A bullish divergence already formed yesterday, giving the pair a slight push upwards. If AUD/USD is able to sustain that momentum, it could zoom all the way to the next resistance level around 1.0600. But if the 1.0400 handle refuses to give way, AUD/USD could form another bottom at 1.0200.
Ho hum… NZD/USD still seems to be stuck inside a range, with resistance near .8250 and support around .8150. Stochastic is pointing downwards, aiming for the oversold region and suggesting that Kiwi bears could push the pair back to the bottom of the range. If support holds, we might be in for more sideways movement from NZD/USD. But if Kiwi bulls jump into action and trigger a break of the .8250 resistance, NZD/USD could rally back to its recent high around .8330.
Is that a bullish pennant I’m seeing on USD/CAD? Let me remove my groovy glasses to take a closer look. It looks like Happy Pip could get her chance to take a parity play with USD/CAD if the pair goes back up to test the 1.0000 level! But will parity hold again? Stochastic is already in the overbought region, implying that the pair’s rally is almost over. Watch out for a move back to the .9800 area if Loonie bulls take the upper hand!
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. Check him out, playas!