Will the rising trend line on NZD/USD’s daily chart stay intact? It looks like a bullish divergence has formed, since Stochastic showed lower lows while the price made higher lows. Plus, an inverted hammer formed right at the 61.8% Fibonacci retracement level. If you’ve been paying attention in the School of Pipsology, you’d know that the inverted hammer is usually considered a bullish candlestick pattern. If the next candle closes above the inverted hammer’s open price, the pair might be in for a strong rally, possibly until its November highs around .7975.
“Gimme my turkey!” It looks like traders already packed up their loosest-fitting pants to go to their Thanksgiving dinner by the way EUR/USD is stalling in the charts. After dramatically dropping 2 days ago, the pair is forming a bearish rectangle in the 1-hour chart with resistance at 1.3405 and support at 1.3313. If you’ve been doing your School of Pipsology homework you should know that the pair might drop by at least the size of the rectangle. This could pull the pair down by as much as 100 pips! Watch out for the 1.3286 handle though, as it was a previous major support.
My last piece for the day before I grab the biggest slice of my momma’s pecan pie is the descending channel in GBP/USD’s 4-hour chart. The pair fell sharply over the last few days, but is now stalling at the bottom of the channel. Stochastic is also sporting an oversold signal, which could motivate the bulls to push the pair all the way to 1.5950. Meanwhile, the bears could also watch for a break in the pattern, and aim for the 1.5575 handle, which is a good support and resistance area.