Who’s in the mood for a short-term trade? AUD/USD looks ready for a quick pullback to any of the Fibonacci retracement levels marked on the 1-hour time frame before resuming its climb. Stochastic is moving down from the overbought zone, which means that Aussie bears are in control at the moment. Better wait for the oscillator to turn from the oversold zone before going long!
If range setups are your thang, then you better keep your eyes glued to this potential resistance play on NZD/USD! The pair is just a few pips away from the top of its 300-pip range, with resistance at the .8400 handle and support at the .8100 major psychological level. Stochastic has already reached the overbought zone and is poised to head lower. Reversal candlesticks at the top of the range could be your signal to short.
Here’s a lil’ somethin’ for the position traders out there! CAD/JPY recently broke below a rising trend line connecting the lows on its daily chart. However, price looks ready to make a major retracement, possibly to the 38.2% Fibonacci retracement level. After all, this area lines up with the broken trend line and also the 94.00 major psychological mark. Make sure you set your stops above the trend line or the 95.00 level if you’re thinking of shorting!
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.