For the day traders out there, here’s a nice short-term setup on NZD/USD’s 1-hour chart for y’all. The pair has been pacing back and forth between resistance above the .8300 handle and support just below the .8250 minor psychological level. NZD/USD has been stuck inside this range for a week already, but it seems undecided whether to test the top or to go for the bottom of the range. Stochastic is pointing upwards, which means that Kiwi bulls could carry the pair up to the .8300 area. Better take a look at the latest New Zealand economic data to find out where this baby is headed!
Is that a head and shoulders pattern I’m seeing on AUD/USD’s 4-hour chart? Hold on, let me remove my groovy shades so I can see more clearly. Why, it looks like Happy Pip also spotted this chart formation and is expecting AUD/USD to fall! According to the School of Pipsology, the pair’s drop would most likely be the same height as that of the actual formation, which is a little more than a hundred pips. But if Aussie bulls refuse to give way, they could push the pair back to its recent highs near 1.0800.
Of course, I have a lil’ something for swing traders, too! The daily chart of USD/CAD shows that the pair already broke below the long-term rising trend line, suggesting that the uptrend is over. After that steep dive, the pair might be in for a pullback or a retest of the broken trend line. Any of those Fibonacci retracement levels could hold as resistance and push the pair back down. But with that huge bullish divergence, I’m thinking the pair could rally even higher. Better check out the 9 Rules for Trading Divergences before playing this setup!
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. Check him out, playas!