What do you get when you have higher lows and lower highs? A symmetrical triangle! In USD/CHF’s case, it’s a giant one! Right now, it seems as though bulls and bears are deadlocked, but that might not be the case for long. As you know, symmetrical triangles tend to precede big breakouts, so it may just be a matter of time before USD/CHF moves sharply in one direction. Make sure you know what to do when the market makes its move by reading the School of Pipsology’s lesson on trading breakouts!
I spy with my pippin eye a falling trend line on USD/JPY! Sellers have been in control of this pair since mid-March, but buyers have been putting up a fight in recent days. They’ve managed to get the pair to test the trend line a couple times, but so far, it’s holding! To help you with trading this pair, I suggest you wait for confirmation from candlesticks. Lucky for you, we’ve got a Japanese candlesticks cheat sheet to guide you with your trading!
Last but not least, we have this sweet little setup on EUR/USD! This pair has been trending up in the past couple of weeks, but right now, it’s having difficulty forging a new high. It’s possible that the pair will pull back before it continues its march up the charts, so it might be a good idea to wait for the pair to retest the rising trend line. Then you can decide if you want to get on the bull bandwagon and buy on a retracement, or join the bear camp and wait for the trend line to break down!
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.