If you’re a fan of divergences, then this one’s right up your alley! USD/CAD’s having a tough time breaking through parity, as it even formed a doji to end last week. With price setting new highs and Stochastic showing lower highs, we’ve got some bearish divergence in the works as well. Before you go all in on this setup, I suggest waiting for some bearish candles to form and give us more confirmation.
This one’s for all the Fibonacci playas out there! Could AUD/USD be ready to resume its downtrend? Its tough to say, but we should find out soon enough! The pair is slowly approaching the 50.0%-61.8% retracement zone and with Stochastic now in overbought territory, where we could see sellers jump in and bring this baby downtown. Watch out for those reversal candlesticks!
Do I still have my beer goggles on or am I really seeing a falling channel develop on NZD/USD? With the pair bouncing off the bottom support level and gapping up over the weekend, we may see the bulls go off on another run. Don’t be surprised if we see them rally to the top of the channel at around .8240!
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.