EUR/USD is once again consolidating on the 4-hour chart, and this time it’s hanging around a falling trendline resistance. Not only that, Stochastic is also in the overbought region! If the pair follows its pattern on the last two times that a consolidation and a Stochastic signal lined up, then we might see some partyin’ by the euro bears. A stop above 1.3200 is safe enough if you’re trading the falling trendline, but make sure you keep close tabs in case the euro bulls are hungrier than we think!
Next up is a possible rising wedge on Guppy‘s 4-hour chart. The pair has been on a strong uptrend for the past couple of days, and it looks like the pound bulls are ready for a breather around the 132.00 handle. If the consolidation on the rising wedge plays out like the School of Pipsology suggested, then a short near the consolidation area might be a good idea. Just make sure you put a stop loss, aight?
My last setup for today is a simple support and resistance setup on NZD/USD‘s 4-hour chart. The area just below the .8300 handle has been a significant level for the pair since late January, and it looks like the Kiwi bulls and bears are about to have another face-off. A buy order above the .8300 handle is a good idea if you’re bullish on the comdoll, but you can also place a short order just below the consolidation if you want to short Kiwi.
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.