Ooohh baby, look at EUR/USD chilin’ like a villain within that horizontal channel! The pair has been bouncing between a tight range of just 120 pips. With the pair now approaching the bottom of the range for the fourth time, is a breakout imminent? Be on the look out for a candle close below 1.4750 as a sign that this pair is breaking out.
Look at the Swiss franc slice and dice its way against the dollar! USD/CHF has been on a steady decline, falling TEN straight days. Watch out though, as the pair is now approaching the bottom of a descending channel. In addition, Stochastic is deep in oversold territory. I’d wait and see how price reacts to the support level around .8500 before I crunk it up and buy against the trend.
For all you contrarian playas out there, here’s a setup you might like! Looking at the daily chart of USD/JPY, I see that price is now stalling at the 50.0% Fibonacci retracement level. This price area (80.90) was also a major area of interest in the past. With Stochastic indicating oversold conditions, could we see a reversal soon? I’d probably wait for some bullish candles before jumping in on this pair.
Now, I know the setups I present daily are wicked-sick. But before you get carried away with all these chart patterns and candlesticks, remember that technical analysis is only half the story. 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 Economic Roundup. Check him out, playas!