How low can USD/CAD go? The pair has been selling off for quite some time already but it might be due for a quick bounce from its current levels, as a bullish divergence has materialized on its daily forex time frame. Although the pair is currently finding support at the 38.2% Fibonacci retracement level, it could still go for a deeper pullback to the 61.8% Fib, which is in line with the former resistance area around the 1.0600 handle.
Heads up, Aussie traders! AUD/USD might be in for a big long-term reversal, as a double bottom forex chart pattern has formed on its daily time frame. The pair is still miles away from the neckline but it could be on its way to test that resistance area pretty soon. Do take note though that stochastic has already reached the overbought area, indicating that buying pressure is weakening. A quick pullback might be in the cards before this one tests the .9650 minor psychological resistance!
Which way could USD/CHF be headed? The pair is currently finding support around the middle of the falling channel on its daily time frame, with a bullish divergence suggesting that a bounce is ready to happen. In that case, USD/CHF might make its way back to the channel resistance around the .8900 major psychological level. On the other hand, the pair might still be on track to test the channel support near the .8600 mark if the divergence doesn’t play out.
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.