First up for today is a classic retracement setup on USD/CHF. The pair has been on a rising trendline since late last month, and it looks like it’s about to hit the 50% Fib retracement on the 4-hour chart. What’s more, the 50% Fib is also lining up nicely with the .8900 major psychological handle! You might want to wait for an oversold Stochastic signal if you’re planning on buying the pair, but you can also enter at market and place your stop below the trendline.
Will EUR/JPY choose a direction soon? The pair is lollygagging on a symmetrical triangle on the 1-hour chart, but judging on the tightening ranges, it’s also about to break the pattern. So which direction is it going to be? Will the pair reach the former highs above 108.00, or will it fall all the way to the previous support at 106.50? Make sure your stop losses are firmly in place when you trade this one!
Last up on deck today is a potential bearish rectangle on EUR/GBP‘s 4-hour chart. After falling from the .8800 handle, the pair is currently confined to a 100-pip range between .8650 and .8550. The euro bulls and bears can probably trade the range for the next couple of hours, but as the School of Pipsology suggests, there is a possibility that the pair might continue its downward move if the rectangle breaks to the downside.
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.