Let’s start the week with a potential ascending triangle action on USD/CHF. The pair is making higher lows on the daily chart, and is fast approaching the support-turned-resistance area just above .9300. Will the level hold as resistance, or will the scrilla bulls dominate price action? Stochastic is currently on the bears’ side, but watch for any breaks to the upside!
Remember the falling wedge that I pointed out last week? Well, it looks like it finally broke to the upside! Thing is, it encountered resistance around the 1.0450 area and is now falling back to a potential support at the broken trend line. Will 1.0300 provide enough support for the bulls, or will the pair drop back to test the wedge support? Stochastic is suggesting that it’s still a coin toss, so make sure you keep an eye out for this setup!
Last up for today is a simple divergence play on EUR/AUD. On the 4-hour chart is a potential bullish divergence with price making lower lows and Stochastic sporting higher lows. Not only that, Stochastic seems to have crossed in the oversold region and is ready to get back up just as price is consolidating at 1.2600, a major psychological handle. A stop below the previous low might be a good idea if you’re thinking of buying this pair.
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.