Aaah… Breakout! EUR/USD made a convincing break below that rising trend line that has been holding for more than a month already. However, bears seem to be a bit hesitant to push the pair lower, as a small retracement might take place first. EUR/USD could retest the broken trend line, which is right around the 50% Fibonacci retracement level. Stochastic is pointing down from the overbought zone, indicating that selling pressure is mounting.
If you’re really dollar bullish, then here’s another setup that you gotta check out! USD/CAD just made an upside break from its range, but the pair looks ready to make a quick pullback before heading any higher. Stochastic is moving down from the overbought area, which means that bears are in control at the moment. The tides could shift once USD/CAD tests the former resistance at the 1.1150 minor psychological level and the pair might bounce back to its recent highs near 1.1300.
As for the dollar bears out there, y’all didn’t think I’d leave you behind, did ya? If you take a look at this break and retest situation on USD/CHF’s 4-hour time frame, you’d spot a potential opportunity to short the Greenback. The pair seems to have found resistance at the 38.2% Fib, which lines up with a support turned resistance area, while stochastic is indicating overbought conditions. If the pair keeps selling off, it might reach its recent lows near .8700 or even make new ones!
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.