If you’re a hardcore euro bull, then you should definitely check this one out! EUR/CAD has just bounced off the bottom of the ascending channel on its 4-hour time frame, suggesting that the long-term uptrend is still intact. Right now, it’s stalling somewhere around the middle, as though deciding which way to go. Stochastic is hinting that the rally could be sustained since the oscillator is still pointing upwards. If that’s the case, this baby could go all the way up to the top of the channel!
Bounce, bounce, bounce… break? NZD/CHF is currently sitting at the bottom of its 300-pip range and testing support near the .7400 major psychological level. Stochastic hasn’t quite crossed out of the oversold region just yet, indicating that Kiwi bears have enough energy to push the pair lower. A breakdown could mark the start of a longer-term downtrend but a bounce might take the pair up to its recent highs around .7500 or at least the middle of the range at the .7550 minor psychological mark.
Lower highs and higher lows… Why, that’s a symmetrical triangle forming right there! But before you start positioning for a breakout, you should know that the top of the triangle is still holding as resistance for CAD/JPY at the moment. In fact, a small bearish divergence can be seen on the 4-hour time frame, as stochastic has drawn lower highs while price made higher highs. A selloff could last until the bottom of the triangle around 93.50-94.00 while an upside break could be a sign of a longer-term rally.
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.