EUR/USD: Daily
Wooo! EUR/USD blew through those Fib levels I pointed out last week with the speed of a souped-up whip! Scaling out a bit, it seems that the pair has formed a head and shoulders formation and is now threatening to break below the neckline support. Look for a daily candle close below 1.3000 as a sign that the break is for real!
GBP/USD: Daily
Here’s a pattern that I don’t feature much. After posting higher highs and lower lows, GBP/USD appears to be trading within a broadening formation on the daily chart. Currently, the pair is chillin’ just above the 1.5800 handle. If price manages to continue its free fall, I’d wait to see how it reacts to potential support at 1.5600 before establishing any positions.
NZD/USD: 4-hour
Lastly, here’s another look at the Kiwi. If you’re into trading ranges, then this pair might be for you! Over the past month, the Kiwi has been bouncing between resistance near .8270 and support at .8080. The pair is currently in no-man’s land but make sure you have your trigger finger ready once price tests the top or bottom of the range! I suspect that we could see a lot of interest at those levels!
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.
