After encountering support at the .9200 level, USD/CHF is now back at the .9400 psychological handle. What makes this setup sweet is that the area has served as support and resistance in the past, and is right smack at the Fib retracement levels on the 4-hour chart. And don’t forget that bearish divergence! A stop above the Fib levels is a good idea if you think that the dollar is about to fall, but you could also wait for a couple of confirmation candles if you think that USD/CHF’s uptrend isn’t over just yet.
Here’s one for the dollar bulls! USD/CAD has slipped from its weekly highs and is now headed towards the 1.0400 handle. The area is a former resistance zone and is sitting near the 38.2% Fib. Not only that, but Stochastic also looks like it’s about to shoot up from the oversold region! What do you think? Are you up for buying the scrilla against the Loonie this week?
Last up is a nice and simple range play on EUR/GBP. The pair just sported a doji around the .8500 hard level, and, judging from the oversold Stochastic signal, it could soon go higher. A stop just below its most recent lows could still give you a good risk ratio if you aim for the top of the range on the daily chart.
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.