Missed that downside break on AUD/CAD’s 1-hour forex chart? Don’t worry! You might still have a chance at catching the drop on a quick retracement to the broken support zone around the .9800 major psychological handle. This lines up with the 50% Fibonacci retracement level, which might hold as resistance and push price back to the previous lows near .9600. Stochastic is making its way out of the oversold region anyway, which means that sellers are taking a break for now. Just make sure you set your stop above the 61.8% Fib if you’re thinking of shorting!
If you think the trend is your friend, you should definitely take a look a this potential forex retracement on CAD/JPY’s 4-hour time frame. As you can see, the pair has been trading below a falling trend line for quite some time and is currently pulling back to that resistance area. The 50% Fibonacci retracement level might keep gains in check, as this lines up with the trend line and an area of interest. Stochastic is already in the overbought zone, hinting that Loonie bears could take control of price action soon and push price back to its previous lows around the 96.00 handle.
Here’s another break and retest play on NZD/USD’s 4-hour forex chart. The pair has just found support at the .7200 major psychological level and is showing signs of pulling up to the Fib levels marked on this time frame. A shallow retracement could last until the 38.2% Fibonacci level, which lines up with an area of interest, while a larger correction could reach the broken support near the .7650 minor psychological level. This lines up with the 61.8% Fibonacci retracement level and might be the line in the sand for any potential rallies. Better wait for reversal candlesticks before shorting!
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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.