Breakout alert! NZD/USD looks like it’s breaking above a falling channel that’s been holding since early August last year. But are we really looking at a fakeout over here? The pair has just been rejected at the .7300 major psychological area, which isn’t surprising since it lines up with November’s highs. And look at stochastic about to go down from the overbought zone! Shorting at current levels is a good idea if you think that Kiwi is set to re-test its lows near the .7000 major psychological handle. But if you believe that the channel’s resistance is about to become a support level, then you might want to wait for a couple more candlesticks and enough momentum before pushing the “buy” button.
Is it me, or is NZD/JPY sporting a double top in the making? The pair is heading fast towards the 80.75 psychological handle after getting rejected at the 83.50 area. What makes the 80.75 level more interesting is that it marks the “neckline” for the pattern on the daily time frame. A break below the neckline could drag the pair down to the 79.25 area of interest, while a bounce higher could lead to a re-test of the previous highs. What do you think? Are we looking at a potential double top? Or just a bounce from a really, really good lookin’ support level?
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