If you’re a huge fan of Fibonacci retracements, then this setup is for you! AUD/CAD has been selling off aggressively lately but it has found support around the .9450 minor psychological level. Stochastic is pointing up, suggesting that Aussie bulls could push the pair higher, possibly until any of the Fib levels on the 1-hour time frame. Take note that the .9600 major psychological handle lines up with a former support area and the 61.8% Fib level!
Euro bulls, be careful! EUR/CAD is already testing the top of the ascending channel on its 4-hour time frame while stochastic is indicating overbought conditions. A selloff might be in the cards, enough to take the pair back to the bottom of the rising channel. If you think this pair is ready to make a break for it though, make sure you set your buy stop orders properly in order to avoid a fakeout.
Here’s one for the position traders out there! USD/CAD is still trading inside its long-term rising channel, which can be seen on the pair’s daily time frame. It appears ready to test the top of the channel around 1.0800 soon and it remains to be seen whether that area will still hold as resistance or not. Better wait for reversal candlestick patterns to form before shorting though!
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.