Heres one for the dollar bears! USD/CAD has just popped up a shooting star on the daily chart. Whats interesting about it is that its also right smack at the 1.0500 major psychological area. If thats not bearish enough for ya, then check out a potential bearish divergence forming right when Stochastic has reached the overbought zone. The uptrend that preceded the shooting star looks strong though, so be creative with your stop losses!
Are those two indecision candles I see on NZD/USDs daily chart? Why, yes they are! As you can see, two doji-type candlesticks have formed, suggesting that the bulls and the bears are having a tough time seizing control of the pairs direction. But with the formation of the bullish divergence, it seems that the bulls are concealing some hidden strength and could take the pair higher soon. If that happens, price could fly as high as .8100 before encountering major resistance.
Is the retracement on USD/JPY done? After surging to around the 93.00 level, USD/JPY has slowly climbed back up and is now testing the 50.0% Fibonacci level. If youre the aggressive type, you can go short at around 98.75. On the flip side, if youre willing to wait a bit, you can consider going short around the 61.8% Fib, which lines up closely with former major resistance.
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.