Looks like USD/JPY is stuck in a range! After finding strong resistance near the 103.00 major psychological level, it seems that this pair is headed back down to the bottom of the range around the 101.00 mark. The mid-range area of interest might hold as support though, as stochastic is already moving out of the oversold zone and indicating that bulls could take control. In that case, price might make another test of the range resistance and possibly go for a breakout this time.
Reversal alert! EUR/CAD has formed a double bottom forex chart pattern on its 4-hour time frame, suggesting that the previous downtrend might soon reverse. Of course price has yet to break above the neckline of the formation around the 1.4650 minor psychological resistance before heading further north. Stochastic is almost in the oversold region already, which means that euro bulls could charge sooner or later. If price makes an upside break, the uptrend might last by as much as 250 pips, which is the same height as the chart pattern.
Here’s another potential reversal play, on a shorter-term time frame this time. USD/CHF appears to be forming a double top pattern on its 1-hour forex chart, as price seems to be tired of climbing. The pair is still a few pips away from testing the neckline at the .9050 minor psychological level though and stochastic seems to be hinting that a bounce might be in the cards. If price moves all the way below the neckline though, the resulting downtrend might last by close to 7o pips, which is the same height as the double top.
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.