I spy with my single eye a falling trend line on EUR/USD! The bears have been in complete control of the pair since October 17 but it looks like the bulls are starting to fight back! Yesterday, the bears weren’t able to push the pair to a new low and price is now pulling back. If you’re still bearish on the pair, there’s a potential sell setup around the 50% Fibonacci retracement level as it nicely coincides with the falling trend line resistance.
Next up is a sweet little long setup on USD/CHF. This pair has been moving up in the past few weeks but right now, it’s having a difficult time posting new high. It’s possible that the pair will pull back before it continues its rally up the charts, so it might be prudent to wait for the pair to retest the rising trend line. Then you can decide if you want to get on the bull bandwagon and buy on a retracement, or join the bear camp and wait for the trend line to finally crack!
What do you get when you have higher lows and lower highs? A symmetrical triangle! In AUD/USD’s case, it’s a humongous one! Right now, it looks like the bulls and the bears are in a tough battle, but that could change soon. The pair is consolidating, which means it’s only a matter of time before the symmetrical triangle breaks. Make sure you know what to do when the market makes its move by reading the School of Pipsology’s lesson on breakouts!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.