First up, here’s a short-term setup that might be good for some quick pips! NZD/USD is approaching the bottom of its range, with support at .8200 and resistance at .8400. Stochastic is already indicating oversold conditions, hinting that bulls are ready to charge. The oscillator hasn’t started moving higher though, which means that there’s still a chance the pair could dip a little lower to .8200 before bouncing back up.
Here’s an update on the GBP/USD channel I showed y’all a few days back. Guess what? The top of the channel is holdin’ like a boss! At the same time, stochastic is moving lower, suggesting that there’s enough downward pressure to push the pair at least until the middle of the channel around the 1.6000 major psychological level. If pound bears feeling pumped, they could even bring this one down to the bottom of the channel near 1.5850!
Last but not least is another long-term range, but this one is a little tricky. As you can see from the 4-hour chart above, AUD/NZD just bounced off the bottom of the range around 1.1200 but stochastic is lingering around the overbought zone. Talk about getting mixed signals! Another test of the 1.1200 support might be in the cards before this pair heads any higher, and it’s possible that a breakdown could take place too!
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.