Look out below, mate! Looks like the Aussie is in for one big nosedive! The pair just broke through key support at 1.0350 and seems poised for more losses. Don’t be surprised if the bears drag this pair all the way down to 1.0175, which served as a major support level in the past.
Is it time to start loading up on some long Kiwi positions? After all, the pair is now sitting at the bottom of a rising channel! But instead of buying blindly, you might wanna wait for more candlestick confirmation before putting on any buy orders. You can also wait for Stochastic to hit oversold conditions, which would indicate that sellers have run out of steam.
Last up, here’s my take on EUR/GBP! After forming a double top earlier this week, EUR/GBP has now broken through the neckline and appears to be forming a bearish pennant. Another run by the bears could open the floodgates to a move all the way down to the .8400 psychological level.
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.