Can GBP/CAD resume its climb soon? Stochastic has been lingering in the oversold area for quite some time, which means that sellers are already feeling very exhausted. GBP/CAD might be able to find support at the nearby 50% Fibonacci retracement level or the 1.8050 minor psychological mark, as these line up with a former forex resistance level. If this area holds as a floor, the pair might be able to return to its previous highs near the 1.8250 minor psychological resistance. A deeper pullback might last until the 61.8% Fib or perhaps the 1.8000 major psychological handle.
Looks like AUD/JPY might be in for another dive, as the pair is finding resistance near the 38.2% Fibonacci retracement level and a former forex support zone. At the same time, stochastic is moving down from the overbought region, reflecting a pickup in bearish momentum. This might be enough to take AUD/JPY back down to its previous lows around the 92.00 handle or even allow it to make new lows! A higher retracement could reach the 50% Fib, which also lines up with an area of interest, or probably until the 61.8% Fib and 96.00 mark.
If you’d rather trade forex chart patterns, then this setup is just for you! AUD/CAD has formed a double top on its 1-hour time frame, suggesting that the recent uptrend might soon see a reversal. Price has yet to break below the neckline at the .9850 minor psychological support before confirming the potential selloff, which might last by at least a hundred pips. Stochastic is already in the oversold area though so a bounce might still be possible, allowing AUD/CAD to form another top at the .9950 minor psychological mark.
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.