First up is a treat for the dollar bears. USD/CHF is consolidating at what looks like a bearish pennant on the 1-hour chart. If you’ve read your School of Pipsology then you’ll know that pennants are usually continuation patterns formed after strong moves. Of course, this setup could always turn into a symmetrical triangle play where price could break in either direction. In any case, you should be ready to trade possible breakouts if you’re planning on trading this pair!
Here’s another dollar setup for ya! USD/JPY has just bounced from the 101.50 psychological area and is headed fast towards the 102.50 zone. Stochastic hasn’t reached the overbought region yet so we could still see the dollar pop up before encountering any major resistance. Will the bulls end their cause at 102.50 or will USD/JPY reach the 103.25 range resistance before showing weaknesses?
Don’t look now, but there’s a possible head and shoulders action on GBP/AUD’s daily chart! What makes this setup more interesting is that price is currently near the “neckline” areas. If this is indeed a head and shoulders pattern, then we’re talking about a 1,000-pip move in case of a downside breakout. Read up on trading head and shoulders patterns in case you haven’t tried trading them 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.