This is a battle between two currencies whose futures are looking bright at the moment: British Pound and New Zealand Dollar. It looks like traders are having trouble choosing between the two currencies most likely to raise rates in the next year or two as we see consolidation around the 1.9400 – 1.9500 area. A break from this symmetrical triangle has big pip potential in either direction with major resistance at 1.9700 and 2.000 on an upside break, and to the downside, 1.9000 is an easy reach for this big moving pair.
EUR/USD is clearly in an uptrend with its higher ‘lows’, but it’s currently test a strong area of interest in 1.3400 – 1.3500. The probability is with the bulls at the moment because of the upside momentum, but a downside break of that rising trendline has good R:R potential for those who aren’t really feeling the euro at this time.
This is probably the chart of the day, not only because of the break of the strong resistance area between 159.50 – 160.00, but also because this market is testing a major area of interest not seen since the summer of 2009. This area reaches all the way up to 163.00, so this initial break may have a bit more to go, but if it does pull back, look at 160.00 as a level to watch for bulls to jump in.
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.