Oh my, what do we have here? It looks like a nice little sexy shooting star candlestick formation has appeared on Cable, hinting that the pair has POSSIBLY topped out. With price unable to pierce through the 61.8% Fibonacci retracement level and stochastics turning lower, we could see price head down. How low exactly? Well, if downward momentum remains strong, expect to see a retest of the major support at the 1.5360 region. Remember, this is a daily chart, so it may take a while before price reaches our target! Stay sharp!
Just look at EURJPY chillin’ like ice cream fillin’ at the 112.00 handle after getting rejected at 113.00. But, it seems like the euro bulls are on to something! Is that a possible bullish divergence I see with price making higher lows and stochastics making lower lows? We may just see the bulls take a shot at 113.00 once again! But wait, stochastics hasn’t hit the oversold turf yet. Maybe we’ll see a retracement back to the 38.2% Fib at around 110.60 where the pair has previously found support.
Talk about neck-and-neck! Get the 411 on the 4-hour chart of one of Cyclopip‘s favorite pairs, EURCAD. At a glance, it may seem like the sellers have the upper hand in this joust with the pair being at the top of that descending channel. However, if we take a peek at stochastics, we would see that the buyers could be revving up for another shot at the 1.3500 handle with that bullish divergence. Ay, caramba! You may want to check out Pip Diddy‘s blog to see which is the stronger currency between the euro and the Loonie.