Kaboom! NZD/CHF just broke past a rising resistance trend line! It took the bulls multiple tries but they finally broke through! Don’t get too excited though, as price just bounced off the .8000 handle, which just so happened to be a major resistance point in the past. Will the bulls have enough to break to new highs? For now, your best bet may be to wait for a solid candle close above .8000 before pushing your chips to the middle of the table.
Next up is this classic chart pattern on EUR/JPY. Price action is forming a double top on the daily chart, with the second high being significantly lower than the first. This signals to me that a break of the neckline may be imminent. Watch out for a solid bearish marubozu candle as a sign that the bears are in control!
Lastly, here’s my take on Guppy. If you normally trade on lower time frames, you’d probably say that GBP/JPY is stuck in consolidation mode. Zooming out though, we can see that the pair appears to be forming a head and shoulders formation. This setup will probably take another week to play out, but keep in mind that falling neckline, as it could provide some short-term support this week.
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.