When will USD/JPY’s selloff end? A look at the daily chart suggests that the pair is on its way to testing the broken resistance area around 100.00 to 101.00, which happens to be right in between the 38.2% and 50% Fibonacci retracement levels. Stochastic is still making its way towards the oversold region, hinting that bears could push the pair a little lower before an actual bounce takes place.
Here’s an update on the GBP/USD ascending channel setup I showed y’all a few days back! GBP/USD just turned after reaching the channel resistance and is on its way back down. The pair is currently stalling at the middle of the channel but might soon test the bottom around the 1.6400 major psychological level before climbing again. Make sure you wait for stochastic to turn from the oversold region before hopping in a long trade though!
More losses for USD/CHF? The pair recently broke below the neckline of the double top pattern on its 4-hour time frame, indicating that the selloff could go deeper, possibly until the next established support level around the .8850 mark. Take note that the pattern is roughly 150 pips in height, which suggests that the resulting decline could be of the same size. Be careful since stochastic is in the oversold region already!
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.