First up, here’s USD/CHF on the 1-hour timeframe. With price making lower lows while Stochastic is making higher lows, it looks like a bullish divergence has materialized. Does this mean support at the 50% Fibonacci retracement level will hold? Maybe. If you feel like going long on the pair, watch out for a bullish candlestick to close around the support area. On the other hand, a close below Friday’s low around .9350 could signal that the pair is on its way down to .9200.
Now let’s head on over to the 4-hour timeframe of EUR/CHF. The pair recently broke support around the 1.2270 area. However, with reversal candlesticks forming just above the 1.2200 handle and Stochastic being in oversold territory, I have a feeling that the pair could test 1.2270 again. If there are enough euro bulls in the market, EUR/CHF could rally back up and test the previous support are which lines up nicely with the 38.2% Fib level. However, if not, the pair could continue trading lower and possibly test its previous low around 1.2130.
Finally, we have NZD/USD to end today’s piptastic roster of charts! If you’ve finished the School of Pipsology, then you’re a cool cat who probably sees the bearish divergence I just pointed out. Also, the pair testing resistance at the 38.2% Fib level makes it an even more appealing short. Sweet, eh? But be careful not to get too excited homies. A close above .7650 could signal that NZD/USD is on its way back up to .7750.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.