Will USD/CAD’s range hold? The pair has been pacing back and forth between resistance near 1.0050 and support around .9950 for almost an entire month now! Right now, the pair is making its way towards the top of the range while stochastic is nearing the overbought zone. If resistance around the 1.0050 minor psychological level holds, we might just see USD/CAD head back down to the .9950 support. Keep an eye out for that!
Now here’s a neat descending channel on AUD/USD’s 4-hour time frame. The pair just retreated from its climb after hitting the top of the channel around the 1.0700 major psychological handle. Stochastic is pointing down, suggesting that Aussie bears have the upper hand, but will they be able to take the pair back down to the bottom of the channel? If Aussie bulls jump back to action, watch out for a test of the top of the channel or possibly an upside breakout.
Just like USD/CAD, NZD/USD seems to be stuck inside a range on its 4-hour chart. The pair has been bouncing up and down between resistance at .8400 and support above the .8250 minor psychological level. The pair just turned after hitting the top of the range and appears poised to test the bottom, as stochastic just made its way out of the overbought zone. Stay on your toes for a potential bounce if the pair hits the .8250 area again.
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.