Here’s an update on the USD/CAD rising channel setup I showed y’all a few days back! As it turns out, price did head all the way to the top of the channel, which appears to be holding as resistance for now. After all, this lines up with the 1.1150 minor psychological handle. USD/CAD might then make its way back to the channel support near the 1.1000 major psychological level, although stochastic appears to be hinting that buyers are about to take control of price action. In this case, an upside breakout from the forex channel could be possible!
Ooh, looks like AUD/NZD is stalling at an area of interest visible on its 4-hour forex time frame! The pair appears to be finding support at the 1.0950 minor psychological level, which lines up with the 50% Fibonacci retracement level and a resistance-turned-support area. A strong bounce from this level could take AUD/NZD back to its previous highs near the 1.1300 handle while further declines could lead to a test of the 61.8% Fib. Bear in mind that stochastic is indicating overbought conditions, which means that sellers could take control of price action sooner or later.
Is that a bullish divergence I’m seeing on AUD/JPY’s daily forex chart? Price has formed higher lows while stochastic drew lower lows, suggesting that a bounce might take place once the oscillator starts moving out of the oversold zone. If that happens, AUD/JPY could climb back to the previous highs close to the 99.00 major psychological resistance. After all, price is also finding support at the 50% Fibonacci retracement level, which lines up with a former resistance area around the 96.00 mark. Make sure you set your stops right if you’re planning on going long!
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.