Breakout alert! After weeks of consolidation inside a symmetrical triangle forex chart pattern on its 1-hour time frame, AUD/NZD finally picked a direction and broke to the upside. This could mean that more gains are in the cards for the pair, as the formation is roughly 150 pips in height and the resulting rally could be of the same size. Stochastic is already in the overbought zone though, indicating that buying pressure could wind down sooner or later. In that case, a retest of the broken triangle resistance might take place before AUD/NZD heads further north.
Here’s another breakout situation! EUR/CHF recently breached the support zone around the 1.2135 level and dipped below the 1.2100 handle. From there, buyers pushed the pair back up for a potential retest of the broken support area. Using the Fib tool on the latest swing high and low reveals that the 50% Fibonacci retracement level lines up with the potential resistance. Stochastic is still moving higher anyway, which means that price could still keep pulling back for now before resuming its drop.
Better pay attention to this one, fellas! The pullback on GBP/CHF’s 1-hour forex time frame seems to be turning around, as price is finding resistance around the 38.2% Fibonacci retracement level. To top it off, stochastic has already reached the overbought region and is showing signs of heading back down. A selloff could take GBP/CHF back to its previous lows around 1.5060, but a higher retracement could reach until the 50% Fib or the 61.8% Fib, which is close to a falling trend line connecting the highs of the price.
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.