Position traders, huddle up! AUD/CAD is testing a key area of interest on its daily forex chart, as the pair appears to be finding resistance around parity. Price spiked close to the 1.0100 handle but quickly retreated close to the 61.8% Fibonacci retracement level while stochastic started to cross down from the overbought area. This could be a sign that Aussie bears are ready to push the pair back down to the previous lows or at least until the nearby support zone around the .9700 handle. A convincing move past the recent spike, however, could confirm that further gains are in the cards.
Now here’s another potential retracement play, but this time on EUR/NZD’s 4-hour forex chart. Euro bulls seem to be on top of their game for now and might have enough energy to push for a large correction until the 61.8% Fibonacci retracement level. This lines up with a support-turned-resistance area right around the 1.5650 minor psychological level. Stochastic is already indicating overbought conditions but hasn’t moved lower, which means that there could be enough buying pressure for a move higher. if the resistance holds, price could make its way down to its previous lows at the 1.4800 area.
Last but not least is a potential short-term bounce on AUD/USD’s 1-hour forex chart. As you can see, price is currently testing the range support around the .8100 major psychological level and may be due for a rally. Stochastic is indicating a pickup in bullish momentum anyway, which suggests that a move to the top of the range at the .8250 minor psychological resistance is possible. A strong break below the .8100 handle, on the other hand, could mean that the pair is in for more losses. Just make sure you know how to avoid fakeouts if you’re planning on shorting!
Slow Stochastic: 14,3,3 100 SMA: Blue line 200 SMA: Red line 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.