AUD/USD: Daily
Surf’s up baby! That’s been the trend on AUD/USD, as it’s been trading within an ascending channel over the past few weeks. Now that the pair is testing the top of the channel and we’re starting to see some bearish divergence form, could we see the bears jump in now? If you’re more of the cautious type who likes surfin’ with floaters, you might wanna wait for another bearish candle close for more confirmation.
NZD/USD: Daily
Next up is another reversal pattern on NZD/USD. It seems that a three-bar turn formation has emerged on the daily chart, with yesterday’s candle forming a solid bearish marubozu candle. With bearish divergence also in play, I wouldn’t be surprised if the bears push this pair to new lows and possibly retest resistance-turned-support at .8060.
USD/CAD: 4-hour
Lastly, here’s my take on USD/CAD. The pair has been consolidating lately and has formed a falling wedge. Take note that falling wedges are normally reversal patterns. Combining this with the bullish divergence that’s formed on the 4-hour chart, we could see the bulls jump in soon. Be on the lookout for a solid candlestick close above the 1.0000 mark as a sign that wedge has been broken. On the other hand, if we see price close below .9950, it may signal that the pair is headed for new lows.
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.
