Gather round, fellas! Here’s a break-and-retest scenario you wouldn’t want to miss. USD/CHF is trending down on its 1-hour time frame and the falling trend line connecting its highs is still intact. The pair looks ready to test the trend line once more and, with the 61.8% Fib coinciding with a former support level, it looks like USD/CHF might just retrace to that area. It’s pretty cool how it lines up with the .9300 major psychological resistance, too!
EUR/AUD seems poised to make new lows, as the descending channel on its 1-hour time frame is holdin’ like a boss! The pair just turned upon reaching the top of the channel, but the bullish divergence is keeping it from reaching the bottom. Another test of the channel resistance might be in the cards or, if the divergence fails, EUR/GBP might head south to test the bottom of the channel.
Here’s another trend line and Fib combo! On its 1-hour time frame, there’s a falling trend line connecting the highs of EUR/GBP and it appears that a quick pullback just took place. The .8400 major psychological level, which lines up with the 50% Fibonacci retracement level and is close to the trend line, just held as resistance. Stochastic is already moving lower, which suggests that EUR/GBP might do the same.
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.