Be careful, pound bulls! A double top pattern has formed on GBP/USD’s 1-hour time frame, which means that the pair’s rallies might soon be over. According to my handy-dandy Chart Patterns Cheat Sheet, this hints at an upcoming downtrend as soon as the pair breaks below the neckline. In this case, that support level is located around the 1.6175 area.
Check out EUR/CHF edging higher and higher on its short-term time frame! On the 1-hour chart, a rising channel can be drawn connecting the pair’s recent low and highs. The pair appears to be testing the bottom of the channel right now, which suggests that another bounce might happen pretty soon. Stochastic is moving lower though so euro bears might still be in charge for now.
Here’s another yen pair for all the currency cross traders out there! CAD/JPY has been on a steady downtrend, as a falling channel has formed on the pair’s 1-hour chart. Right now, CAD/JPY is stalling at the middle of the channel, still deciding which way to go. Stochastic seems to be hinting at another test of the channel resistance, as the oscillator is moving out of the oversold region.
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.