What a ride it’s been for the Loonie! After bottoming out around 1.0150, USD/CAD has soared up the charts and is now testing a major resistance zone at 1.0380-1.0400. With Stochastic deep in overbought territory, have the bulls run out of steam? If you’re the patient type, I suggest waiting for a solid bearish marubozu candle before clicking on the sell button!
Next up is an update from yesterday’s Cable chart. It looks like a doji has formed at 38.2% Fibonacci level, which is a strong signal that the uptrend may continue. Of course, nothing is set in stone, so make sure you have a stop loss in place if you do decide to go long!
Lastly, here’s my take on everyone’s favorite pair, EUR/USD! Just like Cable, the pair has now retraced and is testing the 38.2% Fibonacci level. Keep in mind that this happens to lineup with 1.3200, which was a major support level last week. With Stochastic crossing over out of oversold territory, is it time to start buying?
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.