What a way to start the week! EUR/USD gapped up over a hundred pips over the weekend, but before euro bulls could celebrate, bears clawed back and closed the weekend gap. Now it looks as though the forming falling trend line may hold as support right at 1.4300. If sellers can’t push the pair below 1.4300, the pair’s next destination might be 1.4400. However, if this level fails to hold, the pair may just revisit the former low at around 1.4100.
It’s alive! The range on GBP/USD, that is! It looked as though the range was done for when the pair gapped up over the weekend. But no sooner had the pair risen above 1.6450 than sellers poured back in and muscled GBP/USD back down. Stochastic seems to suggest that the pair may be headed back to the bottom of the range, an almost 200-pip drop. But if bulls can push for a retest of 1.6450, they may just be able to force a breakout and see fresh highs on GBP/USD.
Last but not least, we have USD/CHF sporting a similar weekend gap on its 1-hour chart. Feeling bearish for the dollar? Get ready to short because the pair is already showing signs of hesitation right below the 38.2% Fibonacci level, which just so happens to line up with a former support level. Chances are, the pair will continue falling at least until it hits the week’s opening price. But if the market can’t sustain sub-0.7600 levels, the pair may return to trade around .7700.
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!