First up, let’s kick things off with EUR/CAD. This sexy lady has been trading within a sweet rising channel over the past few months. Last Friday however, the pair found resistance right smack at the top of the channel. With a long-wicked, bearish candle forming, and with Stochastic crossing over out of overbought conditions, we may see the pair head lower. Look out for another bearish marubozu candle today as a sign that the bears are back in control of this pair.
Ahhh… horizontal channels. Aren’t they a thing of beauty? You just gotta wait for price to test the top or the bottom and bam – you’ve got a trade setup! The only problem is of course, when it’s trading right smack in the middle of channel, like on EUR/CHF! Just keep in mind that Stochastic just crossed back down. If we see a candle close below minor support around 1.2750, then we may just see this pair boogie all the way down to major support at 1.2450.
Last up, I’ve got something for all you playas who love trading breakout setups. GBP/CHF has formed a gigantic descending triangle, and is currently chillin’ right above the major support line at 1.4400. Stochastic has just crawled out of oversold conditions, indicating we may see a bounce from support. Still, I am wary that this pattern has downside bias, so it might be best to wait for a bearish marubozu to close below 1.4400 before jumping in.
Now, I know the setups I present daily are wicked-sick. But before you get carried away with all these chart patterns and candlesticks, 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 Economic Roundup. Check him out, playas!