Rise and shine, forex traders! There’s a rising wedge shining on USD/CHF, and it looks like it’s about to break soon! As taught in the School of Pipsology, when this formation forms after an uptrend, it’s usually a bearish reversal pattern. That, coupled with the fact that a bearish divergence has formed, gives us a pretty strong case for a downside breakout. Just make sure you wait for a solid close below the wedge’s rising support so you don’t get burned!
Anyone in the mood to play a bounce-or-break scenario on USD/CAD? Right now, the pair is finding resistance at parity, which is a tried-and-tested area of interest. If this level holds, there’s a good chance that USD/CAD will retest the bottom of its rising channel. On the other hand, a break above 1.0000 will probably see price form a new high at the top of the said channel.
To wrap up today’s trio, we have a simple trend line on NZD/USD. So far, it’s been holding like a boss, keeping the pair from revisiting its previous low. But how much longer will it hold? A break below the trend line could see price drop back down to .7930. But if buyers remain in control, I wouldn’t be surprised to see this baby climb back up to .8330. Whichever way the market decides to go, there seems to be plenty of room to make pips!
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.