Is a major breakout on EUR/USD in the works? Maybe! Yesterday’s bullish close took the pair above a long-term falling trend line for the first time in months. But it isn’t in the clear just yet! So far, it has only managed to crawl a few pips above the line. Whether or not we’ll see the pair hit fresh highs will probably depend on how today’s daily candlestick will close. Another strongly bullish candlestick could signal the start of a long-term rally, so keep your eyes on this pair!
The resistance level on USD/CAD’s 4-hour chart worked like a charm as price bounced right off it last Friday. Now, it’s time to see if the range’s support will hold! If you think the pair will remain range-bound, look to play the support level at around .9875. On the other hand, if you feel that sellers have enough steam to break through to a new low, it would probably be best to wait for a bearish close below .9850 before you sell this bad boy.
Rounding up today’s trio is this setup on USD/CHF. Right now, the market is testing the pair’s rising trend line, and it looks like it could go either way. In times like this, it’s best to wait for further confirmation from candlesticks. Lucky for you, we’ve got a handy-dandy Japanese Candlesticks Cheat Sheet to guide you with your trading decisions. I suggest you check it out before you commit to a position, homie!
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.