Remember that EUR/USD symmetrical triangle I showed y’all last week? Well, it looks like price did bounce off the bottom of the forex chart pattern and is now testing the top of the triangle. Will it make another bounce or will it go for a break this time? Stochastic is moving lower, indicating that bears are in control for now and that another test of the triangle support near the 1.3350 minor psychological level might take place. If you’re thinking of shorting, just make sure you set your stops right in case a breakout takes place!
If you’re up for a trend play, then you should definitely check out this setup on NZD/USD’s 1-hour forex time frame. The pair has been moving inside a descending trend channel for the past few weeks, indicating that a downtrend is taking place. Price is currently testing the top of the channel, which might continue to hold as resistance, especially since stochastic is still on its way down. A selloff might last until the middle of the channel around the .8450 mark or until the bottom around .8400.
In the mood for a countertrend setup? Here’s a short-term one you can play on EUR/GBP! A rising channel appears to be forming, as price made higher lows and higher highs recently. However, the pair appears to be having trouble extending its gains past the channel resistance, as it also lines up with the .8000 major psychological resistance level. At the same time, stochastic is indicating a pickup in selling pressure, which suggests that a selloff until the channel support near the .7950 handle might be in the cards.
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.