Oooh la la! Remember that setup I pointed out on EUR/USD last week? As it turns out, support at the rising trend line held and now the pair just bounced from resistance at the top of the triangle. With Stochastic already easing out of overbought conditions, will we see EUR/USD trade lower all the way down to the 1.4300 area? Maybe. Just watch out for signs of a reversal though. Who knows, there may still be enough bulls to push the pair back up to 1.4400.
For all you comdoll aficionados out there, dig this spankin’ setup on USD/CAD. With price making lower highs and finding support at the .9800 handle, it looks like the pair is sporting a descending triangle on the 1-hour timeframe. If you’re feeling bearish on the pair, watch out for a strong break below the .9800 psychological handle as this could mean that the pair is on its way down to test support around .9600. On the other hand, if you’re thinking of going long, it may be better to wait for the pair to close above yesterday’s high at .9880.
Now check out this bearish setup I spotted on EUR/CHF in the 4-hour timeframe. It seems like the pair is testing the previous support area around 1.1400. With Stochastic making lower highs while price is making higher highs, it looks like a bearish divergence has materialized. Does this mean the Swissy is going to resume its rally soon? Probably. However, I wouldn’t get too excited if I were you just yet. Be on your toes for bullish candlesticks as these could signal that the pair would rally back up to 1.1850.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.