First up is a simple setup on EUR/CHF‘s 4-hour chart. The euro has been hugging a rising trendline since last week, and it’s looking like it’s encountering additional support at 1.1400. Will the pair continue to gain momentum today? The euro fans can make a play for 1.1550 if the rising trendline support holds, while the euro bears can wait for a break below 1.1400 and drag the pair towards 1.1300.
After days of consolidating, USD/JPY finally picked a direction! Yesterday, the bulls flexed their muscles and managed to the 77.00 major psychological handle, which coincidentally lines up with the top of the range. The question now is, “how high up can USD/JPY go?” Keep a close eye on the 78.00 handle folks, as it could be the bulls’ next target.
Aha! Lookin’ at those higher lows on the 4-hour time frame, it seems like the Kiwi is revving up for another run up the charts. But are there enough bulls around to push the pair past the resistance at the top of the triangle around .8370? Maybe. A strong break above .8400 may just signal that the pair is on its way back up to its previous highs. However, if reversal candlesticks materialize around the resistance area, NZD/USD may just fall back to support around .8300.
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. Check him out, playas!