Time for a retest? After breaking above that falling forex trend line on its 1-hour time frame, NZD/CHF looks ready for a quick pullback. Using the handy-dandy Fib tool on the latest swing low and swing high reveals that the 61.8% retracement level lines up with the broken trend resistance. That’s also close to the .7550 minor psychological level, which makes it an even stronger potential support zone. Make sure you wait for stochastic to hit the oversold region before going long though.
Here’s another break-and-retest forex setup! Earlier this week, USD/CHF made a strong break below the short-term support at the .8775 area. After dipping to a low of .8720, USD/CHF has shown signs of retracing to the support-turned-resistance level. Take note that the 50% Fibonacci retracement level lines up with the broken support while stochastic is already indicating overbought conditions. If the .8775 area holds as a ceiling for forex price rallies, USD/CHF might find its way back down to the .8720 region or lower!
If you’d rather wait for a little bit of momentum before jumping in forex trades, then you should pay attention to the price action on EUR/CHF right now! The pair just bounced off the bottom of the rising channel on its 1-hour chart and looks ready to head back to the top. It appears to be stalling below the 1.2200 major psychological resistance but a break above its current levels could mean a northbound move to the channel resistance at the 1.2250 minor psychological level.
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.