Reversal alert! The Kiwi has been falling recently but it looks like it could take flight again soon, as a hammer candlestick pattern just formed after the latest drop. Stochastic is indicating oversold conditions and is starting to make its way up, which could mean that the pair is ready to bounce. If that happens, price could head back up to the nearby area of interest at .7400 or perhaps until the previous forex highs at .7600. Better wait for confirmation from the next daily candlestick if you’re thinking of catching a long trade!
Here’s an interesting chart you definitely gotta see! USD/CHF is already closing in on its price prior to the infamous SNB announcement removing the franc peg, suggesting that profit-taking might take place. Stochastic has been in the overbought zone for quite some time already, which means that dollar bulls are getting tired. If a lot of sell orders get triggered around the 1.0100-1.0200 levels, price could take a break from its recent forex rallies and drop to nearby support zones. But if franc bears refuse to give in, the pair could push for a strong break past those previous highs.
Y’all didn’t think I’d leave out the short-term traders out there, did ya? Here’s a simple break-and-retest forex setup on GBP/AUD’s 1-hour chart that you might wanna see. The pair recently made a strong break past the 1.9600 major psychological resistance and zoomed up to the 1.9850 area. Price is making a pullback to the Fib levels marked on the latest swing low and high, with the 50% Fibonacci retracement level lining up with the broken resistance area. Stochastic has already reached the oversold region and is turning higher, which suggests that the area of interest might hold as support.
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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.