Ayt! First up in today's line-up is EUR/USD in the 1-hour chart sporting what looks like a symmetrical triangle. Hmmm, I have a feeling that we're gonna see a breakout soon. If you're planning to root for the euro, I think it would be best for you to wait for the pair to close convincingly above 1.4200 as this could signal that the pair is on its way up to 1.4500. Meanwhile, if you plan on rooting for the dollar, a bearish candlestick below 1.4100 may mean that EUR/USD slip below 1.4000 again, so watch out!
Now put your hands up for USD/CHF lookin' so sexy with those Fib lines. It seems to me that bears are revving up to push the pair to a new all-time low again with the pair forming a spinning top at the 38.2% Fibonacci retracement level and Stochastic showing a bearish divergence. Whaddaya think? Don't worry if you're feeling bullish for the dollar, not all hope is lost! Who knows, there may be enough bulls in the market to boost USD/CHF to test its previous low around the 50% Fib level. Heck, there's enough dollar-lovin' to go around today, the pair could even rally back up to .8500!
If you're like Cyclopip who's a big fan of crosses, this setup I spotted on EUR/JPY in the 4-hour timeframe may just tickle your fancy. It's similar setup to what I pointed out on USD/CHF with the pair finding resistance at the 38.2% Fib level and Stochastic being in the overbought area already. I don't find it hard to imagine EUR/JPY testing support at 110.00 soon. However, I don't think I would hop on the bear bandwagon just yet. Note that Stochastic lines haven't crossed. This could indicate that the pair still has room to move up and test resistance around its previous low at 61.8% Fib. If resistance there doesn't hold, we may even see EUR/JPY skyrocket to 117.00!
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!
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