I know y’all love Fib-sticks, so here’s a sweet looking setup on USD/CHF. After it seemed as if the 50.0% was holding nicely, dollar bulls decided to push the pair higher and test the 61.8% Fib at .9774. It seems though, that that area is now serving as a former support turned resistance point. With a bearish marubozu candle forming and Stochastic crossing over from overbought conditions, are sellers about to jump in? Look out for another bearish red candle as a sign that selling pressure is beginning to gain steam!
Remember that rising trend line I pointed out on AUD/USD a few days ago? Well it seems to be holding up quite well! It even looks like we have a couple more factors strengthening the case for an Aussie rally. We’ve got tweezer bottoms and Stochastic in oversold territory to boot! Boo yeah! Feeling bullish? The previous high in the area of 1.0200 looks like a good target. But if you feel that yesterday’s rally was a fluke and that the pair is destined to fall, you might be better off playing the break of the rising trend line.
I just can’t get enough of trend lines! Take a look at this one on EUR/JPY. It looks like the pair is ripe for the picking as Stochastic is deeply overbought, and price is once again within inches of the rising trend line. It might just be a matter of time before sellers pour in and push the pair back down to the previous low of 107.00. Then again, the fourth retest might be the charm for bulls. Buyers could have enough power to take the pair higher, so just be sure to wait for confirmation from candlesticks before you act.