This setup on USD/CHF is a triple threat! Why? Because three potential inflection points intersect in the area of .9660! In this zone lie a former support and resistance level, the Fibonacci retracement levels, and a clean falling trend line. If you’re looking for a chance to sell USD/CHF, you might not get a chance any better than this. Just remember to wait for candlesticks to give you confirmation before you act.
Danger, danger! GBP/USD is free fallin’ and it looks like it may crash below the rising trend line. Sellers have been in control of this pair since it topped out at 1.5900 and they’re not showing signs of stopping yet. If they can manage to force price to close below 1.5740 (a former resistance level), who knows how low they’ll take this pair!
Rounding up today’s trio is EUR/JPY with a potential retracement play. The area of 97.75 was both a support and resistance level in the past, and from the looks of it, it may reprise its role as an area of interest again soon. It lines up really well with the 38.2% Fib level, so if you’re still bullish for the euro, you may want to keep an eye out for signs of a reversal in this hot zone.
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.