One bottom, two bottoms, ha! Pardon my Count Dracula impression, but I can’t wait to sink my teeth into that double bottom formation on USD/CHF’s 4-hour chart. With that bullish divergence, it looks like the pair is headed for the neckline around .8875. And if USD/CHF is able to rally past that resistance level, it could zoom all the way up to the .9000 handle. But if that neckline refuses to give way, USD/CHF could form another bottom around the .8800 level.
Happy Pip better keep her eyes glued to AUD/USD’s 4-hour chart because it could be her chance to buy the pair at a good price. Talk about catching a nice bargain! It seems like the pair is ready to retrace, after having a tough time breaking above 1.0775. It could pull back until the 61.8% Fibonacci retracement level, which is in line with a former resistance area. But if Aussie bulls can’t wait to fight back, watch out for a bounce from the 38.2% or 50% Fibs!
Aha! Here’s another possible retracement play for all you comdoll lovers out there. USD/CAD just took a breather from its dive and pulled up to the 38.2% Fib. Will it climb higher or will it drop back down? That bearish divergence suggests that the former support around the 38.2% Fib could act as resistance now and push the pair to its recent lows. Stochastic still seems to be moving up so if you’re shorting, make sure you place your stops above those Fibs.