What better way to start our week than with this cool ascending triangle on GBP/USD! This pair just bounced off its long-term rising trend line, and it looks like it’s about to make its way to 1.6300 again. If you’re thinking of going long, you might want to set your profit target at this major resistance level. On the other hand, if you’re thinking of getting short, you should probably wait for a reversal play to materialize at 1.6300. Just be careful because ascending triangles tend to precede strong bullish moves!
It ain’t too late to jump on the USD/CAD bear bandwagon! Price is slowly approaching a falling trend line right at the .9850 handle, which once served as a strong support level. Will it serve as resistance this time around? With Stochastic indicating overbought conditions, a bearish chart pattern in this area could signal another drop, so keep your eyes locked on this pair, kiddos!
Lastly, we have NZD/USD with a bearish engulfing pattern right at the .8450 major resistance zone. As we learned from the School of Pipsology, this pattern usually serves as an early hint that the market is gearing up for a strong move down. If the pair does complete its reversal, I wouldn’t be surprised to find it back at around .8200.
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.