Remember that long-term support level I showed y’all on NZD/USD? Well, that floor has just been broken, my friends! Zooming in on the 1-hour forex chart and using the Fib tool on the latest swing high and low shows that the broken support area lines up with the 61.8% Fibonacci retracement level. Stochastic is moving down though, which means that the strong selling pressure might lead to shallow retracements.
EUR/USD has been edging lower and lower for days, but bears might need to take a quick breather. Stochastic is already indicating oversold conditions on the 1-hour forex time frame, suggesting that a pullback might take place. In this case, EUR/USD could retreat to the 38.2% Fib and former support level, which might hold as resistance for any rallies. If so, EUR/USD might be able to resume its drop to its previous lows near 1.3600 and maybe even make new ones!
Here’s another pair that might be in for a pretty shallow retracement! GBP/USD has dropped like a rock in recent trading sessions and found a bit of support at the 1.6700 major psychological level. Stochastic is climbing, which means that bulls are in control at the moment and that they could push the pair back to the broken support area just below the 1.6800 handle. Watch out for a break below the 1.6700 mark if bears are too eager to jump in 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.