Remember that NZD/USD 4-hour forex chart I showed y’all yesterday? Well, here’s a zoomed-in version of the pair’s price action indicating a short-term pullback. NZD/USD has retreated to the .7700 major psychological mark, which lines up with a former support area and the 38.2% Fibonacci retracement level. If this holds as resistance, price could fall back to the recent lows close to the .7600 major psychological level or lower. A higher pullback could still be possible since stochastic is pointing up, with the 61.8% Fib as the potential line in the sand.
Heads up, USD/JPY traders! The pair just formed a double top pattern on its 1-hour forex chart, suggesting that a reversal is in the cards. USD/JPY has yet to break below the neckline around the 119.00 major psychological mark before confirming the potential selloff, which might last by as much as 200 pips. Stochastic is making its way out of the oversold region for now, as buyers are in control of price action. This could still lead to another bounce to the previous highs close to 121.00 and the formation of a triple top, which is still a valid reversal pattern.
Looks like USD/CAD’s rally is running out of steam! The pair has just encountered resistance around the 1.1800 major psychological level and is showing signs of a pullback. Using the Fib tool on the latest swing high and low on the 1-hour forex chart reveals that the 61.8% retracement level is close to the former resistance zone at 1.1650. If the retracement is a shallow one, the nearby 38.2% Fib might already hold as support and push price back up to its previous highs and beyond. Stochastic is starting to climb out of the oversold region anyway, indicating that buyers are ready to hop in.
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.