Aha! Here’s my favorite break-and-retest setup forming on USD/CAD’s 1-hour forex chart! The pair has been on a tear in the past week, climbing close to the 1.1400 handle before pulling back. USD/CAD might retreat until the 1.1200 area, which is close to the 50% and 61.8% Fibonacci retracement levels and a former resistance zone. A bounce could take place sooner or later since stochastic is already in the oversold region, although it could still move a little lower. Better wait for reversal candlesticks around the 1.1200 mark or 61.8% Fib if you’re thinking of going long.
Up for a countertrend trade? This could be your chance to hop in one, with NZD/USD’s channel resistance. The pair has been steadily climbing inside a rising channel on its 1-hour forex time frame but it gearing up to test the top of the range. This area might hold as strong resistance since it lines up with the .8000 major psychological level. Stochastic is suggesting a pickup in selling pressure, as the indicator is starting to move out of the overbought region. Just make sure you’ve got your stops ready in case price makes an upside break!
Reversal alert! AUD/NZD might bid farewell to its rallies soon, as a double top forex chart pattern is starting to form on its 4-hour time frame. Price is still a few pips away from the neckline around the 1.0900 major psychological support so y’all might have to be patient with this one. A break below the neckline could confirm the potential downtrend, which might last by as much as 300 pips. However, if the 1.0900 area holds as strong support, AUD/NZD could still bounce and form another top.
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.