Get a load of the ascending triangle that has formed on NZD/USD! Now that the pair is just inches away from the .8450 handle, things could get interesting very soon. The way I see it, there are two ways to trade this bad boy if and when it reaches this former resistance level. First, you can wait for the triangle to break to the upside and go long. Second, if you’re feeling bearish, you can play a bounce off this area of interest and perhaps trade the pair down to its rising trend line.
Raise your hands if you think the rally on EUR/GBP has gone on for too long! If you’ve been waiting for a chance to short this pair’s extended rise, now might just be your chance. It finally met the .8600 handle, which lines up well with the 61.8% Fibonacci level and was once a solid support and resistance level. If you do decide to sell this pair, just remember to practice smart risk management so you don’t get burned if the market decides to pop higher.
My brother from another mother Cyclopip did a great job of spotting this double top on EUR/CHF. Its neckline lies right around 1.2340, and so far, it’s been holding like a boss. If it continues to hold, it might cause the pair to consolidate and perhaps form a range or even a descending triangle. But if it breaks down, the pair might keep falling until it hits the 1.2240 zone, the closest former area of interest.
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.