Could this be the end of the line for Cable bulls? After all, it seems to be forming a double top on the 4-hour chart, as its finding tough resistance at the 1.5900 handle. With Stochastic in overbought territory, we may just see the bears come back in force. Don’t be surprised if we see a test of the neckline at around 1.5800 over the next couple of days.
Take a look at that daily chart of NZD/USD! Fibonacci retracement? Check! Bullish divergence? Check! All that’s missing is some candlestick confirmation! If we see a reversal candlestick form on the Fib level , that may be the signal that we need to start loading up on some long positions!
Lastly, here’s a look at USD/CHF. This pair’s been on a smooth down trend the past few weeks, respectfully bouncing off the falling trend line. Will the bears remain in control or will the bulls finally muster enough strength to break through? We’ll have to be patient on this one and wait for another test of the trend line, which may happen at .9600 handle. If you see some candlesticks indicating a bounce is in play, you know what to do!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.