Taking a look at the major pairs today (2/25), we can see that patience is a virtue.
EURUSD looks to be showing a resistance level that started last fall and still seems to be having an impact. It has been stuck at this for the last week. Look for a drop from resistance.
GBPUSD has been in a long term uptrend over several months but has been showing some weakness over the last week. Waiting for some more clear signals would be suggested.
USDCHF is in a long term downtrend and seems to be setting up for a descending triangle pattern. Even though it looks like a pattern forming, we want to wait for a confirmation to conclude that it is a triangle pattern. The confirmation would be the break in support. It probably still has a few more days of consolidating before a potential break.
USDCAD dropped for most of the 1st half of this month and has since made a bid to return to the uptrend that began last fall. This pair did a retracement to the 1st Fibonacci level at 23.6% and has been climbing since.
NZDUSD is in a trading range with a strong resistance level and dropping down to a couple different support levels. Using the Fibonacci retracement tool is a suggestion for picking those different support levels around 38.2%, 50% and 61.8%. Opportunities exist for making trades off support and resistance.
AUDUSD is another pair that has retraced off its trend. The retracement is right at the 38.2% Fibonacci level. A return and break of the 23.6% level would suggest a return to the trend.
USDJPY ended up retracing to the 50% level at the beginning of this month. Since then, it seems to be establishing higher lows, but highs are not increasing making it look like a potential ascending triangle pattern developing. The confirmation would be a break in this month’s resistance.
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