Is that another bullish flag I’m seeing on USD/JPY’s 1-hour forex chart? It looks like the pair is revving up for another leg of rallies, as price is currently consolidating around the 108.75 levels. An upside break could lead to as much as 150 pips in gains, which is roughly the same height as the flag’s mast. Stochastic is moving higher anyway, indicating that buying momentum is still present. A downside break, on the other hand, might lead to a drop back to the previous support zone near the 107.00 major psychological handle.
Aha! It looks like a break-and-retest situation is goin’ on in EUR/USD’s 1-hour forex time frame! The pair just pulled up from a sharp dive to the 1.2835 area and has come close to testing the broken rising trend line on the same time frame. Price appears to be finding resistance at the 50% Fibonacci retracement level and may head back south soon, especially since stochastic is already moving down from the overbought region. Another selloff could lead to a test of the previous lows or perhaps the creation of new ones.
Reversal alert! USD/CAD just formed a head and shoulders pattern on its 1-hour forex time frame, indicating that a downtrend may be in the cards. Price has yet to break below the neckline of the chart formation below the 1.0950 minor psychological support level before confirming the potential reversal. Take note that the pattern is roughly 150 pips in height, which suggests that the resulting selloff could be of the same height. Be careful since stochastic is moving in the oversold area for now!
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.