A doji on a major psychological level? Sweet! Not only did USD/CHF pop up a doji at .9100, but Stochastic is also on the oversold region. If you think that the dollar is in for more gains and you’re planning to buy the Greenback, then you should watch out for the .9250 area that had served as a solid support level a couple of months ago.
Time to update one of our setups! A couple of days ago I pointed out NZD/USD‘s rising trend line on the daily chart, which showed a possible retracement to a Fib level. Well, it’s certainly retracing now! The pair is currently around the 50% Fib on the 4-hour chart while Stochastic is hanging around the oversold region. Is the pair ready to go back up or are we in for more Kiwi bearishness?
Here’s one for y’all currency cross junkies! GBP/CHF is sitting at 1.4850, a solid support level on the daily chart. What’s making this setup even sweeter is the bullish divergence supporting the pound bulls. You could place a tight stop below the psychological level and aim for previous highs if you think that the pound is in for a treat over the next couple of days.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.