I spy with my Ray-B-covered eyes a descending channel on USD/CHF‘s 1-hour chart! The pair just bounced from the channel bottom but it looks like the mid-channel resistance is giving the bulls a run for their money. Stochastic is still in the oversold area so you might want to wait a while if you’re thinking of shorting the Greenback today.
What’s better than a possible Fib retracement? A Fib level that’s near a former resistance area! The 1.0500 major handle is definitely an area to watch for AUD/USD as it could serve as a support for the comdoll. A loose stop below the 38.2% Fib area is a good swing trade setup especially if you aim for the top of the long-term range near the 1.0600 level.
Position traders huddle up! EUR/USD is hanging around the 1.3100 handle, which is not only near the 38.2% Fib on the daily chart, but is also a former resistance level for the pair. If you’re not too sure about the euro’s weakness then you can wait for more bearish candles. However, if you’re confident that the euro is about to fall then you can short at the 38.2% Fib and place your stop loss above the other Fib levels.
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.