First up is a potential Fib and resistance play on EUR/CHF. The pair just sported a doji on the daily chart, which lined up nicely with the 38.2% Fib and a previous resistance at 1.2350. Stochastic looks like it’s also on the bears’ side, but it also hasn’t crossed just yet. You can short this baby with a tight stop or wait for price to reach the 50% Fib and 1.2500 area if you’re bearish on the pair, but you can also wait for a break above the resistance levels if you’re bullish on the euro.
If you’re a fan of surfing channels then you’re gonna love this one! AUD/USD just hit the top of a descending channel on the daily chart, and yesterday’s red candle at the 1.0800 resistance is signaling that the Aussie‘s rally might be losing steam. A stop above the channel is a good idea if you’re shorting this pair, while the bulls can also wait for an entry near the middle of the channel.
Last on deck today is a potential evening star in USD/CHF‘s daily chart. Aside from popping up a doji near the .8500 resistance, the pair is also forming a potential bearish divergence with price making lower highs and a nearly overbought Stochastic signal making higher highs. Don’t get too excited on shorting this pair though. You might want to wait until today’s candle turns red, or Stochastic hits overbought before jumping on this potential winner.
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. Check him out, playas!