Are my eyes deceiving me or is that a falling channel forming on EUR/USD’s 4-hour forex chart? The pair has been making lower highs and lower lows, indicating that the downtrend might carry on. The channel resistance appears to have held in the latest test, which means that EUR/USD could be on its way back to the bottom of the channel near the 1.3500 major psychological support. Be careful since stochastic looks ready to move higher so bulls might not be willing to let go of the 1.3600 mark just yet.
Feast your eyes on my favorite break-and-retest scenario taking place on GBP/USD’s 1-hour forex chart! Last week, the pair made a convincing break past the 1.7000 major psychological resistance level and zoomed to record highs above the 1.7050 area. Price has retreated to the 38.2% Fib, which is close to the broken resistance area and might act as support from now on. Further gains could take GBP/USD back to the previous highs as stronger buying pressure could even let the pair create new highs!
Last but not least is USD/CHF’s 4-hour forex chart, which is looking like a flipped version of the EUR/USD chart I showed y’all earlier. On this time frame, it can be seen that a rising channel is forming, with price just coming off a test of channel support. Stochastic is climbing, which suggests that the upward momentum could be sustained probably until the top of the channel. It’s not too late to hop in this rally, as price might have roughly 70 pips to go before hitting resistance. Just make sure you set your stop below the channel support!
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.