Bounce or break? USD/CHF has been channeling lower this month and the pair is currently testing the bottom of the channel, just below the .9100 major psychological level. Stochastic is indicating oversold conditions, which means that dollar bears need to take a quick break. A rally could take the pair to the top of the channel, right around the .9150 minor psychological level.
Here’s another pair that’s deciding whether to make a break for it or not! GBP/USD is lingering at the top of its 350-pip range from support at 1.5900 and resistance at 1.6250. Stochastic has reached the overbought zone but hasn’t crossed down yet, which suggests that pound bears are still waiting for a chance to push the pair back down. A selloff could take the pair back to the bottom of the range but an upside break could mean more longer-term gains.
Y’all know how I dig break-and-retest setups, right? This one on NZD/USD seems ripe for the picking! The pair just broke below the .8200 major psychological support zone last week so this level might act as resistance from now on. This is close to the 38.2% Fibonacci retracement level on the 1-hour time frame but the pair might make a higher pullback since stochastic hasn’t crossed down from the overbought level just yet.
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.