Gotta love ’em pullbacks! NZD/USD seems to be offering Kiwi bulls a chance to catch the rallies at a better price, as the pair looks ready to retrace to a potential resistance-turned-support level. This is in line with the .8100 major psychological handle and the 50% Fibonacci retracement level. You know what that means? Confluence, baby!
Is the pound losing weight? I only ask because it has been floating higher and higher on the charts! The ascending channel on GBP/USD’s 4-hour time frame is still holdin’ like a boss and it appears that the pair found support at the middle of the range. However, stochastic is almost in the overbought region already, suggesting that the rallies might be cut short around the top of the channel.
Breakdown alert! Remember that CAD/JPY double top pattern I showed y’all a few days back? Well, the pair has already breached the neckline around the 96.00 handle and looks ready to head further south. Loonie bears seem to be exhausted though, as stochastic is already in the oversold zone. Watch out for a possible retest of the broken neckline support before the pair heads any lower.
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.