It appears that the trend line I presented on AUD/USD yesterday has been invalidated a new one has been created. As you can see, price has been forming “higher lows” but it is starting to retrace now. If you’re part of the bull camp, the 61.8% Fib level could be a good entry point as it lines up nicely with both the ascending trend line and the .9500 major psychological level.
Yesterday, price pulled back to the 1.3300 region and then rose to 1.3400. From the looks of it, the bulls are starting to run out of steam as the Stochastic shows that conditions are overbought. If reversal candlestick patterns appear, it could be a good idea to go short and play the bounce.
Long-term trend traders, huddle up! NZD/USD seems to be presenting a good short play as it is starting to retrace to a very significant broken support level. Remember, whenever price passes through a strong support level, that level normally becomes resistance. In addition to this, the level also lines up with the 50% Fibonacci retracement level and the .8200 major 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.