Feast your eyes on this setup on EUR/USD, folks! Who can resist trading a falling channel when it’s THAT clear?! The pair has been trending down for about a month now, and it has been doing so in a steady manner. If you’ve been looking for an opportunity to hop on the bearish bandwagon, you may just get your chance to do so at around 1.2870. This level served as support in the past, and it also lines up perfectly with the 50% Fib level, so it’s a prime candidate for a resistance zone.
Welcome to doji land! As you can see, USD/CHF recently formed a couple of solid dojis on the 38.2% Fib level. Does this mean it’ll keep rising? Maybe! Stochastic seems to be hinting at a bullish run on USD/CHF as well. It recently got out of the oversold territory, but not before it formed a bearish divergence. Keep your eyes on this one, fellas!
Rounding up today’s trio is this slamtastic setup on AUD/USD. Over the past few weeks, this pair has slowly crept up the charts, but it hasn’t been able to break above 1.0350 yet. The way I see it, there are several ways that you can play this setup. You can trade a breakout above or below the ascending triangle by buying above 1.0350 or selling below the rising trend line. You can also trade bounces off these support and resistance levels by buying the pair when it touches the rising trend line or shorting it when it hits 1.0350. The choice is yours, amigo!
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.