Oh no, it looks like the bulls’ reign is possibly coming to an end! Indecision candlestick patterns, a bearish divergence, and an overbought Stochastic… These are all signs that USD/CHF could stage a reversal to the downside soon. If you’re part of the bear camp, then now is a good time to consider entering! If the pair sells off, the next major support level won’t be until .9500.
Yesterday, the bulls finally broke the top of the ascending triangle and pushed the pair to new highs. It seems that Cable could go even higher, but not before it retraces a bit. The late buyers out there should keep a close eye on the broken resistance at 1.5660. Remember, whenever price passes through a major resistance level, that level becomes support. You never know, 1.5660 could serve as a good buy level!
Range traders, unite! It appears that NZD/USD has been showing some stable price action as it has been pacing back and forth within a wide 150-pip horizontal channel. It’s currently testing the top of the range, and with the Stochastic at overbought territory, we could see the sellers start jumping in again. A close below the .8000 major psychological level could lead to a strong bear rally to the bottom of the range.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.