Beware bulls! After trending higher for the entire November, EUR/USD seems to be losing steam. Why am I saying this? Well, for one thing, yesterday’s candle was a doji, which indicates indecision in the market. Second, a clear bearish divergence has formed as price has made a “lower high” while the Stochastic has made a “higher high.” And last but not the least, the 1.3000 level looks like it’s going to hold. Let’s see what’s going to happen in the next couple of days!
Calling all buyers! The descending trend line resistance on the long-term time frame of EUR/JPY has finally been broken! What does this mean? Well, given the significantly strong close above the 106.00 handle, it looks like we’ll be seeing more gains for the pair as more stops are hit. If you’re going to enter, be wary of the possibility of a pullback! The Stochastic is in deeply overbought territory and the 110.00 level could prove as tough resistance.
Fan of chart patterns? Then take a look at this ascending triangle break on the 4-hour chart of NZD/USD! Last Friday, we saw the pair finally break through convincingly through the .8200 level. Given the strong close above the resistance, it seems that the pair is poised for more gains. If you’re bullish on the pair, look for price to head for .8300 before encountering resistance.
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.