What’s next for EURCHF? Now that it broke above the neckline of that double bottom on the daily chart, it looks like this pair is poised to climb the charts. Lately, its rally seemed to lose steam as it pulled back to retest the neckline, right around the 38.2% Fibonacci retracement level. The stochastics is still pointing downwards, which means that EURCHF could pull back a little lower. If it bounces from any of the Fib levels, it could rally all the way up to its recent high of 1.3392. On the other hand, if the downward momentum continues, EURCHF could find support near the bottoms, around 1.2820 to 1.2850.
Check out how sexy Guppy looks with those Fib lines! Aha, it seems like the bulls and bears are whoopin’ each other’s hineys at the 38.2% Fib after finding resistance at the 133.00 handle. Peekin’ at stochastics which is in the neutral turf, it looks like the time ain’t right yet to declare which side will win this joust for pips. If the bears are able to stage a strong break below the 50.0% Fib, past the major support at 131.64, then we may just see the pair take another shot at the 130.00 handle. On the other hand, if the bulls regain enough power, they may just be able to use the 38.2% Fib as a springboard and retest 133.00 once more.
Last to complete my Fib-o-licious chart art today is EURUSD! Get the 411 on that bullish divergence on the 1-hour chart with price making higher lows and stochastics making lower lows. Sizzliiin’ ain’t it? It looks like the bulls are revving up for another take at the 1.3400 handle. But hold on to your pip-a-manizzles coz I think I’ll wait for ’em sexy candlesticks before I place my bets on the bulls. Who knows, sellers may just be able to push the pair past 1.3300. If they do, there’s a good chance for EURUSD to retrace its gains all the way down to the 61.8% Fib and test the minor support at 1.3237.