Is the Kiwi ready to take flight again? By the looks of its daily chart, it seems that NZD/USD is finding support at the 38.2% Fibonacci retracement level. That’s right in line with a former resistance level at .8050, which could be ready to hold as support for the pair. Stochastic is still pointing downwards though, suggesting that Kiwi bears might be able to push NZD/USD a little lower. Watch out for the nearby potential support at the .8000 major psychological level!
Euro bulls, be careful! If you’re long EUR/JPY, you might wanna keep close tabs on the 98.75 to 99.00 levels which could cap this pair’s rally soon. This area acted as support in the past but might now provide resistance for EUR/JPY. In case EUR/JPY fails to break above that area, the pair might fall back to its recent lows just above the 94.00 handle. Take note though that stochastic hasn’t crossed down from the overbought region yet, which means that the euro could still be headed further north.
Will the SIXTH time be the charm for GBP/USD? This pair already has five failed attempts at breaking above the barrier at 1.5725 but it looks like it ain’t quittin’ yet! Bear in mind that the pair has been forming higher lows, which suggests that pound bulls might be gathering enough energy for an upside breakout. Watch out for a candle to close significantly above 1.5725 before taking any long trades because I’m sure you don’t want to get faked out!
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.