Let’s start off with an Asia comdoll focused pair in AUD/NZD. For quite some time now, this forex pair has been on a fantastic downtrend, which has resumed after a recent bounce to 1.0500. The sellers jumped in with a quickness there to resume the down trend and now breaking previous strong support at 1.0300. With the market lingering just below the break, and at the falling highs trendline, it’s still attractive for the bears to watch and hop on with a little nudge higher.
Price action in AUD/CAD has been tightening up for the past few months, but now we’re starting to see the bears take action, first breaking the higher ‘lows’ trendline, and now possibly breaking minor support at the major psychological level of .9600. This leaves little support until .9400 is met, and if that area breaks, AUD/CAD could be on its way to a major support area around .9200, which hasn’t been seen since August 2013.
Last but not least, I’ve thrown up a comdoll against the Greenback for a little something different in today’s Chart Art. I’ve got the four hour chart of NZD/USD above, showing the pair is in sell mode after finding strong resistance at .7600 (previous major support). The pair is now in the middle of its recent range going back to the beginning of February between .7200 – .7600. This makes the potential reward-to-risk less attractive than catching the top of the range, but there’s still a lot of room to go for the bears if this longer-term rally in the Greenback continues. If .7200 is restested and broken, then look out below because we won’t see major support again until .6600 – .6800.
Forex Chart Settings:
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.