First up on today’s canvas is EUR/USD in the 4-hour timeframe and boy is it lookin’ sexy! The pair is now testing resistance at the falling trend line and the 61.8% Fibonacci retracement level. Checking out Stochastic, it seems like there could also be a bearish divergence in the making with the lines already in the overbought territory. So does this mean EUR/USD is on its way down to 1.4100? Maybe. But I wouldn’t get too excited just yet. Note that Stochastic lines haven’t crossed yet. And who knows, they may still be enough buyers around to push the pair up to 1.4400!
Aha! It looks like the Aussie has been speedin’ in the bear lane, cruisin’ in that descending channel for the past few weeks. However, it seems like AUD/USD bounced from support at the 1.0400 handle. If there’s enough Aussie lovin’ to go around, we may just see the pair continue its rally all the way back up to the top of the channel around 1.0600. If not, AUD/USD may just drop past 1.0400!
Lastly, here’s EUR/CHF for y’all! Hmmm, it seems like the euro pulled off an R. Kelly on the Swissy and bounced, bounced, bounced, bounced to 1.1950 after tapping a new all-time low at 1.1809. With Stochastic still not indicating overbought conditions, can the shared currency rally back up to 1.2150? Err, I wouldn’t jump to that conclusion just yet. Using the Fibonacci retracement tool, it could be that what we’re seeing now is nothing more than a retracement. If resistance at the 38.2% Fib level holds, we may just see bears push the pair to a new low! Watch out for reversal candlesticks around the area, ayt?
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!