First up is a look at NZD/USD’s daily chart. After consolidating heavily around the .7700 major psychological level, the pair is now making its way higher, possibly towards the .8200 handle. It’s too early to say that the pair’s move is a reversal as significant Fibonacci retracement levels have yet to be breached. Keep a close eye on the 50% level–it could hold strongly and could lead to another sell-off in the pair.
Range traders, assemble! Judging from AUD/USD’s hourly chart, it seems that the pair is lacking direction, as has mainly been bouncing around within a sideways channel. It found support at .9050 and resistance at .9300. With price slowly creeping up to the upper boundary, it looks like we might see a battle between the bulls and bears very soon! If it holds, price could fall back down to minor support at .9150.
Not a fan of Fibs or ranges? Have no fear, because I also have a setup for breakout traders. After a sharp fall, USD/CAD seems to have formed a double bottom. You can see this clearly as price found support twice at the 1.0270 area and then shot back up. What you need to watch out for here is the neckline at 1.0325. If it breaks, we could see the pair rally to 1.0365.
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.