AUD/NZD: 4 Hour
This is one of finest trends that we’ve been watching over the past year, and it looks like the party will keep on rockin’ into 2014! On the four hour chart, it looks like the pullback to the Fibonacci retracement area drew in sellers over the holidays. Is it time for another leg down in the trend?
Zooming out a bit on another pair with big move potential for 2014: GBP/CAD. Here on the weekly chart, the pair broke through a year’s worth of consolidation on broad sterling strength in 2013. 1.8000 is the next pit stop, with 1.9000 as a target that makes for very nice reward-to-risk potential. A pullback to 1.6400 – 1.6500 should be closely watched as well.
Now that’s what you call a rally! Since bottoming out in late 2012 at 95.00, it’s been a rocket rider higher with very few hiccups along the way. This is thanks to broad yen weakness due to Japan’s very easy monetary policy, but will it be enough to take the pair another 2500 pips in 2014 to the pre-crisis levels of 2008? Who knows, but a pullback to 139.00 – 140.00 area is definitely one to watch for buyer support in 2014!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.