USD/CHF’s downtrend still seems to be intact as the falling trend line connecting the pair’s highs on the 1-hour time frame is holding. The pair seems ready to make a retracement, which suggests that it could make another test of the trend line. The 61.8% Fibonacci retracement level is in line with a former support area and the falling trend line, which makes it a potential resistance level.
Up, up, here we go! EUR/JPY has been climbing steadily inside a rising channel on its 4-hour time frame, as the pair is currently testing the bottom. As luck would have it, the channel support is right in line with the 130.00 major psychological level. At the same time, stochastic is in the oversold region, hinting that a bounce is in the cards.
After surging past the .8000 mark, NZD/USD seems to have run out of breath as it has retreated upon reaching the .8100 area. For the Kiwi bulls out there, this could be your chance to catch a retracement! The former resistance around .8000 could now act as support since it’s located right between the 50% and 61.8% Fib levels. Stochastic has formed a bullish divergence, as it made lower lows while price made higher lows.
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.