Here’s a little range play for y’all! After dropping below the 1.0100 area last week, USD/CAD returned to its bounce along the 80-pip range in the 1-hour chart. The 1.0250 handle has been a major support for the past few days, with support at 1.0170. Stochastic is also signaling a potential upswing for the pair, but keep your eyes peeled for any surprises!
Who’s in the mood for a wedgie? Unlike Forex Gump who bolted at the reminder of his childhood, dollar bulls and bears might be interested at the rising wedge that has been forming at the USD/JPY’s 4-hour chart. If you’ve been doing your School of Pipsology homework then you’ll know that a rising wedge can go both directions. The 85.20 handle might be a good target for the bulls, while the bears can watch out for the 80.60 area for a support.
Check out the Swissy rockin’ a double bottom on the daily chart! As y’all know, this chart pattern usually signals that the pair’s downtrend is over and that an uptrend is about to begin. As you can see, USD/CHF is sitting just above the neckline at the 1.0000 handle. According to the brand-spankin’-new School of Pipsology, the size of the breakout would be approximately the same height as that of the chart formation, which is roughly 500 pips. That means that if the pair continues its rally, it could move all the way up to the 1.0500 area. However, Stochastic is already in the overbought zone, which means that sellers could take over. If that happens, the pair could form another bottom near the .9500 level.