How low can EUR/GBP go? After finding resistance around the .8485 area, this pair fell by roughly 50 pips yesterday and is moving closer to testing the bottom of its range. This coincides with the .8400 major psychological level, which could act as strong support. At the same time, stochastic is making its way towards the oversold region, suggesting that euro bulls could take control very soon.
After bouncing from the 1.5200 major psychological support and bottom of the rising channel earlier this week, GBP/AUD climbed all the way up to the top of the channel. Will it hold as resistance for now? Stochastic, which is edging down from the overbought zone, seems to be hinting that the pair is due for a selloff. If that’s the case, GBP/AUD could test the bottom of its channel once more.
Now here’s one for y’all yen traders out there! NZD/JPY has been moving sideways for quite some time now, as the pair found support at 82.50 and resistance at 84.75. The pair is just a few pips away from testing the top of its range while stochastic has already reached the overbought region. If resistance still holds, NZD/JPY could make its way back down to the 82.50 mark!
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.