Fancy Fibonacci setups? Then this one might be for you playa! It seems that NZD/USD is finding solid support at the .8200 handle, which also happens to line up with 38.2% Fibonacci retracement level. Scrolling back, I see that this was also a major resistance point in the past. With Stochastic now back in oversold territory, could we see the bulls make a comeback?
If one Fibonacci play is sweet, then two must be downright awesome, yea? Looks like the bears have been in major control of EUR/JPY over the past week, as it’s now dropped SIX consecutive days. Now that price is approaching the 38.2% Fib, will we see the bulls make a comeback? Your best bet might be to wait for Stochastic to hit oversold conditions first and for some Fib-sticks to form before loading up on buy positions!
Last up, here’s a popular chart pattern to finish off my post. Currently, AUD/USD is chillin’ within a falling wedge. The only question is, which way will it break out? A solid candle close above the 1.0500 mark may signal a move back up to the recent high at 1.0600. On the other hand, a bearish marubozu that close below 1.0300 could mean that the bears could drag down AUD/USD all the way back to the 1.0200 handle.
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.