Careful, euro bears! EUR/USD is currently testing a strong support area at the bottom of the rising channel on its daily forex time frame. Stochastic has been indicating oversold conditions for quite some time already, suggesting that euro bulls could be ready to charge soon. A bounce from this area could push EUR/USD back to the nearby resistance at the 1.3750 minor psychological level while a breakdown could confirm that a deeper selloff is in the cards.
Who’s up for a quick retest? It looks like USD/CHF is pulling back to the broken resistance level on its daily chart, as the pair needs more buying pressure to sustain its rallies past the .9000 major psychological mark. A retest of the .8900 area of interest could be in the cards, especially since stochastic has been spending some time in the overbought zone already. A deeper retracement could take USD/CHF to the next support area around .8800 to .8850 while a sharp selloff could lead to a test of the .8700 floor.
Look at USD/JPY still stuck inside the descending triangle on its daily forex chart! The pair made an attempt to break lower last month but it bounced right back up to test the top again. Could an upside break be in the cards then? Stochastic is hinting that another selloff might take place, as the oscillator look ready to head down from the overbought region. In that case, USD/JPY might make another test of support above 101.00 and possibly try to go for a breakout again!
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.