Who’s up for a sweet-looking Fib play on Cable? As you can see, the pair just found significant support at the 38.2% Fibonacci retracement, which is a previous major resistance level. This seems to indicate that the pair is going to head higher, especially since the Stochastic has just moved out of oversold territory. If you’re bullish on the pair, you still have time to jump in long to possibly ride the pair to the former swing high.
Look at that smooth move down! Over the past week, USD/CAD has been trading within a descending channel, falling just over 150 pips. Will we see the bearish move continue? From the looks of it, the pair has room to fall, as it still hasn’t tested bottom of the formation. The next major support level to keep an eye on is 1.0100.
USD/CHF bears, beware! Yesterday, the pair finally broke out of .9400, which is a very significant support. The pair’s descent might be stalling now, but for how long? Price action now looks like a bearish flag, which could mean that the bears are simply catching their breaths before taking the pair lower again. If you’re part of the bear camp, waiting for a convincing close below .9300 could be a good idea before jumping in short.
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.