Is USD/CHF ready to reverse? On its 4-hour forex time frame, the pair has formed a double bottom pattern and is on its way to test the neckline around the .8900 major psychological resistance. An upside break from this level could confirm that an uptrend is in the cards, with a rally likely to last by as much as 200 pips! Be careful though, as stochastic is moving down from the overbought zone. If .8900 still holds as resistance, USD/CHF might make another bottom near the .8700 area.
Here’s an update on the USD/CAD forex chart I showed y’all yesterday. It looks like the pair is still stuck in consolidation, as though waiting for an economic catalyst to provide a clear direction. Stochastic is indicating overbought conditions though, which means that sellers are ready to jump in any time now. Keep your eyes glued on the broken trend line, which lines up with the 50% to 61.8% Fibonacci retracement levels as these might act as resistance in the near term.
No wonder the Kiwi’s having a tough time extending its climb! NZD/USD is hitting a ceiling at the top of the rising channel on its daily forex chart, with Kiwi traders sitting at the edge of their seats ahead of the RBNZ rate decision this week. Stochastic is crawling down, reflecting a bit of selling pressure. A long red candle might confirm that a selloff is underway but a strong upside break above .8750 could mean that the Kiwi is set to fly higher!
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.