Looks like NZD/JPY’s descending trend line is holding up really well! The pair is currently testing the falling resistance area while stochastic looks ready to resume its drop, indicating that price could head further south as well. Support at the 81.00 major psychological level seems to be holding so far this week but a strong breakdown could occur if Kiwi bears are strong enough. The 100 SMA is below the 200 SMA anyway, confirming that the downtrend could carry on. However, a higher pullback to the 100 SMA resistance near 82.00 might still be possible if Kiwi bulls put up a good fight.
Don’t look now but EUR/AUD seems to be breaking above the bullish flag pattern on its 1-hour forex chart! As you can see, the pair previously made a strong rally then consolidated inside a small ascending triangle pattern before making another attempt to climb. If the resistance at 1.4800 continues to hold, another test of the flag support could take place. Stochastic is still moving up, which means that there’s enough bullish momentum to spur more gains for this one. At the same time, the 100 SMA is edging farther away from the long-term 200 SMA, also confirming that buyers are gaining more energy. Note that the earlier rally was around 300 pips high so the upside breakout could be of the same height.
For the position traders out there, y’all didn’t think I’d leave you out, did ya? If you’re waiting for a test of long-term inflection points, then you gotta take a look at this USD/CAD weekly forex chart. The pair is currently hovering around its yearly highs around the 1.2800 major psychological level, which has held as resistance in nearly a decade. An upside break from this area of interest could lead to more gains for USD/CAD while a reversal candlestick might signal that the downtrend would resume. Stochastic is moving higher, which means that buyers are in control of price action, while the 100 SMA is treading above the 200 SMA. Better keep your eyes peeled for more confirmation on where this pair could go!
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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.