Is it over? GBP/USD’s retracement on the daily chart, that is! With the price showing lower highs and stochastic making higher highs, a bearish divergence has formed. This suggests that pound bears could pounce soon and push the pair back to its former lows around 1.5300. Watch out for a big drop if that former support area around the 1.6000 major psychological level acts as resistance. Come to think of it, that level lines up with the 50% Fibonacci retracement level, too!
Aaaah… Breakout! Pardon the 80s throwback, fellas, I was just in the mood for a retro groove. Besides, EUR/CHF seems to be breaking down from its symmetrical triangle formation. From what I recall in the chart patterns lesson in the School of Pipsology, the breakdown could be approximately the same size as the height of the formation. In this case, the symmetrical triangle is roughly 150 pips tall, which means that EUR/CHF could drop all the way down to 1.2200. Be careful though, stochastic is almost in the oversold region already!
Either these groovy shades are fooling me or I’m seeing a double top formation on AUD/USD’s 1-hour chart. The pair already broke below the neckline of the pattern yesterday but it looks like Aussie bulls aren’t taking this lightly. Stochastic is already in the oversold area, suggesting that we could see some upward price action soon. Then again, we might be in for a mere retracement, possibly until the 61.8% Fib which lines up with the formation’s neckline.
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.