This one goes out to my homies out there who like trading breakouts. After rising to the .9300 area, USD/CHF is now hanging around on a rectangle. Stochastic isn’t any help though, as it’s right at the middle zone. So which way do you think will USD/CHF go? Will the dollar bulls renew their efforts or will the bears finally step up?
Talk about weekend gaps! EUR/JPY closed below 123.50 last Friday but gapped up to the 125.00 handle a couple of hours ago. If the pair closes the gap and finds support at the 123.50 area, then it would have bounced at the middle of the falling channel. The possible mid-channel support is a good area to buy if you think that the euro has room to rise but you could also wait at the bottom of the channel near 121.50 if you think that the euro selloff isn’t over just yet.
Don’t look now, but there’s a possible bearish divergence on USD/CAD‘s 4-hour chart! Not only that, but I also spy with my cool eyes a couple of indecision candles near the 1.0250 psychological area. A stop above the level could give you a sweet risk ratio if you aim for the next possible support at 1.0100.
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.