Here’s an update on that USD/CHF forex chart I showed y’all yesterday. The pair just made a strong upside break from the trend line, indicating that the downtrend is already over. Price is in tight consolidation at the moment, forming a bullish pennant pattern and suggesting that the rally could resume as soon as more bulls catch on. Stochastic is heading down for now, but USD/CHF could start climbing again once the oscillator reaches the oversold zone and moves back up.
Aaah… breakout! AUD/USD breached the rising trend line on its 1-hour forex chart, hinting that bulls are tired of pushing the pair higher. Further losses might be in the cards, but price looks ready to make a quick retracement before resuming its drop. The Fibonacci levels on the latest swing high and low line up with the broken trend line, which could act as a potential resistance area. Make sure you set your stop above the highest Fib if you’re thinking of shorting!
Careful, euro bulls! EUR/CHF already broke below the rising trend channel on its 4-hour forex chart, which means that the pair might be headed south. Before that happens though, a pullback to the broken channel support could be in the cards, as price bounced off the 1.2130 lows and retreated to the 38.2% Fib level. Stochastic is almost in the overbought level, indicating that bulls are exhausted and bears are just waiting to take over. A higher pullback could last until the 50% Fib, which is closer to the channel bottom.
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.