After that euro dive, sellers gotta pull up for air at some point! EUR/USD appears to be finding support at the 1.3250 minor psychological level and could be in for a retracement. Using the handy-dandy Fib tool on the latest swing high and low on the 1-hour forex chart shows that the 61.8% level lines up with the broken support at 1.3350. A shallow retracement might last until the 38.2% Fib only, as stochastic seems to be indicating that sellers are eager to jump back in. Another selloff could lead to a test of the previous lows or perhaps the formation of new ones!
Here’s another break-and-retest scenario that’s almost ready to play out! NZD/USD is retracing to the broken support zone around the .8425 area, which is close to the 50% Fibonacci retracement level. A higher pullback could lead to a test of the 61.8% Fib, which lines up with the .8450 minor psychological handle, but it looks like price is already finding resistance at the 38.2% Fib. At the same time, stochastic is showing that sellers are already in control for now and might be ready to push NZD/USD back to its recent lows near .8350.
Missed the USD/CHF breakout? Don’t fret! You could still have the chance to catch the pullback to the broken resistance zone. Price is gearing up for a retracement to the Fib levels on the 1-hour forex chart, with the 38.2% Fib lining up with the .9100 major psychological level and an area of interest. To top it off, stochastic is already crossing out of the oversold area, indicating that buyers are ready to take control of price action sooner or later. If USD/CHF is able to resume its climb, it could make its way back up to the previous highs at .9150 and beyond.
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.