What a pullback on USD/JPY! The pair just made a sharp drop to test the rising trend line on its 1-hour forex chart and may be due for a strong bounce soon. Price dipped briefly below the trend line support but climbed back above the 200 SMA right away. This could be a sign that buyers had been waiting to go long at better prices and instantly hopped in the pullback. With that, USD/JPY might be able to resume its climb back to the previous highs close to the 122.00 major psychological level. Stochastic is still heading north anyway, which suggests that further gains are in the cards.
Think the trend is your friend? You might wanna look into this rising channel setup on USD/CHF’s 1-hour forex chart! The pair is currently testing the bottom of the channel around the .9700 major psychological level, which might hold as support. A bounce from this area could take USD/CHF back to the top of the channel just past the .9800 handle. Stochastic is already indicating overbought conditions though, which means that buyers are already feeling tired. If sellers take over, a downside break of channel support could be possible and lead to more losses for the pair.
NZD/USD might be gearing up for a retest of the broken support level on its 1-hour forex chart, as signs of a major correction are materializing. After bouncing off the .7600 support area, the pair could climb to the 61.8% Fibonacci retracement level around the .7800 major psychological mark. If this area holds as resistance, NZD/USD might resume its drop back to its previous lows or even create new ones. Stochastic is heading lower for now, which means that Kiwi bears are in control of price action and might keep the retracement shallow.
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.