Let’s start things off with a potential swing trade on USD/CHF. The long-term falling trend line on its daily time frame is still holdin’ like a boss as the pair formed a shooting star just below the .9300 handle. That’s right in line with the falling trend line and a former support level! Stochastic hasn’t quite made it to the overbought region yet, which means that the pair could still climb. Wait for the next daily candle to close below the low of the shooting star if you’re thinking of shorting!
Now here’s a possible retracement play on EUR/USD. The pair just staged a strong selloff last week as it broke below the major psychological support at 1.3200. But with stochastic crawling out of the oversold zone, it appears that euro bulls could have the upper hand at the moment. EUR/USD could pull up to the former support turned resistance at 1.3200, which is close to the 61.8% Fib level, before resuming its drop.
Did GBP/USD just break below the neckline of the double top formation on the 4-hour chart? It does appear that the pair made a clean break below the 1.6100 mark, which suggests that a downtrend could be in the cards. Note that the formation is roughly a couple hundred pips in height, which means that the pair could fall by 200 pips as well. Be mindful though that stochastic is pointing upwards, suggesting that a quick retracement might be in the works before a selloff takes place.
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.