Who’s up for some Fib action? GBP/USD is consolidating at the 1.5750 area, which is right at the 38.2% Fibonacci retracement level and a former support on the 1-hour chart. But that’s not all, brothas! A hidden divergence has also popped up! A stop above the previous support area could give you a good risk ratio if you think that Cable is about to revisit yesterday’s lows.
Next up is a lil’ somethin’ for the comdoll junkies like our girl Happy Pip. USD/CAD is heading towards parity, which is near the 50% Fib retracement area and a rising trend line on the 4-hour chart. Stochastic is also near the oversold region, which could be part of a bullish divergence. Watch out for the major 1.0000 handle though. The Loonie bulls and bears could be waiting at the major psychological level!
Last up for today is so simple a 4-year old kid could spot it with his eyes closed. EUR/AUD is revisiting the 1.2900 area, which has served as a pretty solid support level on the 1-hour chart. Stochastic is almost at the overbought zone too, which could soon fire up the euro bears. A tight stop above the 1.2900 handle could give you some pips if you’re planning on shorting the euro.
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.