Are my eyes deceiving me or is that an upside breakout I’m seeing? Happy Pip pointed out this range on NZD/USD’s 4-hour time frame, but it appears that the pair is starting to breach the resistance at the .8100 major psychological level. Stochastic is in the overbought region but still headed higher, suggesting that Kiwi bulls have enough energy to boost the pair. How high can it go?
Here’s another pair that’s currently testing its range. EUR/GBP has tumbled until the .8400 major psychological support level, as stochastic has also fallen to the oversold region. A bounce from this area could mean that EUR/GBP is headed back to the top of the range, which is close to the .8800 mark, or at least until the middle. Make sure you set your stops right if you’re planning on trading this one!
Last but not least is an update on the GBP/AUD chart I showed y’all yesterday. Aside from the bullish divergence that formed around the 1.6850 minor psychological level, which also happens to be a resistance-turned-support zone, I’m also seeing a rising channel on its 4-hour time frame! Better check if this setup meets the 9 Rules for Trading Divergences if you wanna jump in.
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.