How high can USD/CAD go? The pair seems to be forming an ascending channel on its 1-hour time frame, as it bounced from the 1.0350 minor psychological support earlier this week. Stochastic is already in the overbought zone, but it hasn’t crossed down yet, which suggests that bulls can still push the pair north. If that’s the case, USD/CAD could be on its way to test the next resistance area at 1.0450, which is at the top of the rising channel.
Ooh, looks like that 83.00 handle is holding like a boss for NZD/JPY! The pair made a couple of failed attempts to break above this support turned resistance level in the past few trading days. Right now, stochastic is heading lower, indicating that Kiwi bears are in control. Further selling pressure could take the pair back to its recent lows around the 81.50 minor psychological support.
Here’s a potential range play on EUR/GBP. The pair has just climbed to the top of the range around .8600, but it appears undecided whether it wants to break out or not. Stochastic is pointing upwards while EUR/GBP seems to have formed a bullish flag, suggesting a potential upside breakout. However, if .8600 still holds as resistance, this pair might be forced to head back to the bottom of the range at .8400.
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.