Looks like EUR/USD is still on a solid downtrend, mates! The pair just tested the top of the falling channel on the 4-hour time frame and zoomed right back down to test the bottom. The question is, will support still hold this time around? Stochastic seems to be hinting at a bounce as the oscillator is making its way into the oversold region but, until it crosses back up, euro bears could keep dragging this pair down!
Is the cable rally overdone? The daily chart is showing that the pair is currently hitting resistance around the 1.5250 minor psychological level, which happens to be a former support level. At the same time, stochastic just reached the overbought zone, suggesting that pound bears are ready to pounce any time soon. If that’s the case, GBP/USD could be on its way back to its previous lows below the 1.5000 major psychological handle.
Now here’s a potential range forming on USD/CHF’s 4-hour time frame. The pair seems to be moving sideways these days as support at the .9400 major psychological handle held like a boss for more than a few weeks. The pair seems prepared to head north and test the top of the range around .9550 once more while stochastic looks ready to turn down from the overbought region.
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.