Will USD/CHF keep droppin’ it like it’s hot? The pair seems to be having trouble breaking below the .8900 major psychological level so a quick pullback might be in the cards. Using the handy-dandy Fib tool on the 4-hour time frame shows that the 61.8% retracement level is closely in line with the falling trend line connecting the pair’s highs. Stochastic is almost in the overbought region too, suggesting that the downtrend could resume soon.
Testing, testing… It looks like AUD/JPY is still unsure about continuing its recent rallies, as the pair has retreated to retest the broken neckline of the inverse head and shoulders pattern. This reversal chart formation, which has formed on the pair’s daily time frame, is hinting that an uptrend is in the works but it appears that stochastic is pointing at a deeper selloff until it reaches the oversold region.
Heads up! EUR/AUD is already testing the area of interest right around the 1.4450 to 1.4500 zone. This region has acted as resistance then support then resistance again! Will it continue to hold as resistance this time? Stochastic is sayin’ that the recent rally is about to turn, as the oscillator already turned from the overbought region. Make sure you set your stops right if you’re trading this one!
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.