Aww yeah! It looks like USD/JPY is getting ready to give support at 78.00 another go! Right now, it’s hanging just a few pips above this level of interest, which has served as a pretty solid support over the past month. In addition, Stochastic is already in the deep end of the oversold pool. Y’all know what that means, don’t ya? Be on the lookout for candlestick patterns for potential early reversal signs!
From the looks of it, the market isn’t quite ready to push GBP/USD to new heights. It failed to get the pair to close above 1.6300, resulting in long-wicked candlesticks and a bearish divergence. If sellers can keep the pair from retesting the previous high, they might be able to push it back down below 1.6200. On the other hand, if buyers can prop the pair back up to consolidate just below 1.6300, it could mean that they’re gearing up for an upside breakout.
Did resistance at .8300 hold like a boss or what?! Though it has been tested quite a number of times over the past couple of weeks, not once did this level give way to buying pressure on NZD/USD. Now, it seems like the bears are gaining control of the pair, as the latest rejection from .8300 was pretty harsh. If this continues and today’s daily candlestick closes bearishly, I wouldn’t be surprised to see the pair fall even further down to around .8100 or even .8000.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.