Is the Kiwi finally ready to pull back? After selling off since the start of September, NZD/USD is showing signs of a retracement on its 1-hour forex chart. Price appears to have found support near the .8120 area and might pull up to the Fib levels from the latest swing high and low. The 100 and 200 SMAs might also serve as resistance zones, as these line up with the 38.2% Fib and the 50% Fib respectively. Stochastic is already in the overbought zone, indicating that Kiwi bears are eager to hop back in, which could lead to a shallow retracement up to the .8200 major psychological mark.
Here’s another potential pullback opportunity! USD/CAD has been steadily climbing, but it looks like a retracement is in order, as the pair recently found resistance near the 1.1200 major psychological level. USD/CAD could retrace to the 1.1000 major psychological support level, which lines up with the rising trend line on the 1-hour forex chart. The 100 SMA might also hold as a floor, as this lines up with the 50% Fibonacci retracement level. Stochastic is already moving out of the oversold zone, reflecting a return in buying momentum, which might then lead to a test of the previous highs.
I’ve saved the best for last since I’m totally diggin’ this break-and-retest scenario on GBP/CAD’s 4-hour forex chart! The pair has recently broken below a key support zone, which is somewhere around the 1.8150-1.8200 psychological levels. Since then, GBP/CAD has tumbled to the 1.7550 area before pulling back up. Price appears to have found resistance at the 1.8000 major psychological level, which is close to the 50% Fibonacci retracement level, and looks ready to head back south until the previous lows. A larger correction could last until the broken support near 1.8150 and the 61.8% Fib, so make sure you set your stop above that area if you’re planning on shorting.
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.