If you’re getting a sense of déjà vu when looking at that there chart, that’s probably because you were able to check out last Thursday’s intraday forex charts update. And as y’all can see, the symmetrical-ish triangle that we identified back then has staged a downside breakout, so give yourself a pat on the back if you were able to ride it down. If you missed it, then worry not since the pair appears to be pulling back, so you may still get an opportunity to go short. And using our Fibonacci tool, we can see that the 50% retracement level looks like a good area to look at, since it lines up with the area of interest at 100.90.
That there rising trend line has been respected since early June. However, price recently smashed past that, which signifies a trend change. And this trend change is confirmed since the moving averages are now in downtrend mode. However, the pair seems to have encountered fresh buyers at the 1.2800 major psychological level and is beginning to pull back up. The bulls would likely be gunning for the area of interest at the 1.3000 major psychological level, which lines up nicely with the 50% Fibonacci retracement level. Although it’s also possible that the pair could retrace higher to the 61.8% retracement level, as the bulls attempt to push the pair back above the rising trend line.
Finally, we’ve got yet another Fibonacci retracement setup, but with a break-and-retest play thrown in. As y’all can see on that there chart, price made a few attempts to break past support at 0.9720, an area of interest with significant market interest, even on the higher time frames. Well, the pair recently managed to break past that support area but seems to have found another support area at 0.9590. If the new support area holds and the pair begins to retrace, then the pair will most likely revisit the broken support area at 0.9720, which sits just above the 50% retracement level.
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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.