Is it time to join the USD/CHF bulls and hop on the long bandwagon? After all, the pair has just closed above a falling trend line! With Stochastic still pushing higher and with a couple of bullish marubozu candles forming the past couple of days, it looks like the bulls may have enough momentum to keep charging higher. Just make sure to keep an eye on that .9500 handle, as it’s proven to be a solid area of interest in the past.
Could this be the end of the line for EUR/JPY? After rising an impressive 2000 pips over the past few months, the pair seems to have found resistance at the 120.00 handle. Not only that, but an evening star candlestick formation has formed on the daily chart as well. If you’re still not convinced, you could wait for Stochastic to exit overbought territory, or for more more bearish candles to form before labeling this as a reversal!
Lastly, here’s a look at the Kiwi. NZD/USD appears to be having some trouble dealing with the .8450 handle, as it’s been serving as rock solid resistance. The only question is whether it will continue to hold or if the bulls will muster enough strength to break through. If you’re in the bull camp, I suggest waiting for a candle close above .8450 before loading up on any positions. On the flip side, you could also wait for a retest of resistance before putting up any sell orders.
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.