Waiting for a chance to join the USD/JPY rally? Well, this just might be it! The pair is stalling at the 120.00 major psychological level and may be due for a pullback, possibly until the rising trend line on the 1-hour forex chart. This lines up with the 100 and 200 SMAs, which have held as a dynamic support level in the past. The pair might retreat to the area of interest around the 119.00 mark, which lines up with the 50% Fibonacci retracement level on the latest swing low and high. Stochastic is already moving out of the oversold area though, which means that dollar bulls are eager to charge and that a shallow pullback might be in play.
Gather ’round, breakout traders. GBP/USD could be gearing up for a strong move, as price is consolidating tighter and tighter inside a symmetrical triangle pattern on the 1-hour forex chart. A breakout in either direction might last by around 250 pips, which is the same height as the chart pattern. Stochastic is on middle ground for now, barely offering any clues on whether the pair might pick the northbound or southbound route. If you’re planning to take a straddle setup, make sure you set your buy and sell orders safely outside the triangle, as this pair is no stranger to volatility and might be prone to fakeouts.
Check out this rising wedge pattern forming on USD/CHF’s 4-hour forex chart! The pair might stay inside the formation, as support at the bottom of the wedge and the .9700 major psychological level seem to be holding for now. Stochastic is indicating a pickup in selling pressure, however, which suggests the possibility of a downside break. If that happens, USD/CHF could see around 400 pips in losses, which is roughly the same height as the wedge pattern. Similarly, an upside break past resistance around the .9800 levels could eventually lead to a 400-pip rally.
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.