Could this be the last call for the Kiwi bulls? After flying up the charts the past 5 days, the pair is now testing a major resistance point at the .8350 mark. With Stochastic deep in overbought conditions, the bulls may have run out of steam to keep pushing forward. If you see Stochastic crossover and a bearish red candle form, you know what to do!
Yesterday, I showed you a bullish setup on 4-hour chart of Cable. Today, I present to you a bearish perspective on the pair. After breaking a long-term rising trend line, GBP/USD has bounced back up and is retesting the rising support line. Could it now prove to be a solid resistance point? I suggest waiting for clearer signals, like a Stochastic crossover or some candlesticks, before betting a bottle of Blue Label on this homies!
Lastly, take a look at this sexy setup on everyone’s favorite major, EUR/USD! If you’re looking to hop on short on this pair, you should pop up that Fib tool. Connecting the recent swing high and low, you’ll notice that the 50.0% Fib lines up nicely with the 1.3000 psychological level. Zooming out to the 4-hour chart, it also seems that a head and shoulders formation is in the works. Could the 1.3000 mark – which served as resistance in the past – prove to be the 2nd shoulder?
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.