More upside for USD/CHF? It looks like the pair is breaking above that bullish flag pattern and is ready to resume its climb! If you think USD/CHF is on its way to test resistance around .9280, you can still catch a long trade above the flag until the top of the range. If you prefer longer-term setups though, you might be better off waiting for an actual test of resistance before jumping in short. Make sure you wait for stochastic to turn from the overbought region as well!
Now here’s a range setup that seems ready to play out anytime now! NZD/USD is currently sitting at the bottom of its 4-hour range, right around the .7700 major psychological handle. On top of that, a bullish divergence has formed, with stochastic making higher lows and price drawing lower lows. Don’t forget to check if this setup meets the 9 Rules for Trading Divergences if you’re thinking of taking a long trade.
Lastly, here’s a potential play for the yen traders out there. Although the top of the range on the 4-hour time frame has held as resistance last week, GBP/JPY doesn’t seem quite ready to dive down just yet. The pair gapped up over the weekend but, as soon as the gap gets filled, GBP/JPY might be on its way to the bottom of the range near the 148.00 mark. Stochastic already reached the overbought zone, suggesting that pound bears are ready to attack.
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.