Time for a quick bounce? USD/CAD has been trading above a rising trend line on its 1-hour forex time frame and looks ready to make a test of the support area. Using the handy-dandy Fib tool on the latest swing low and high reveals that the 38.2% Fibonacci retracement level lines up with the trend line and may act as support. Stochastic is already moving out of the oversold area anyway, which means that buyers are ready to push the pair back up. In that case, USD/CAD could make its way back to the previous highs around 1.1670.
Is this a symmetrical triangle pattern forming on NZD/USD’s 1-hour forex chart? The pair seems to be consolidating inside this formation and is on its way to test the resistance around the .7800 major psychological mark. However, a bearish divergence has just formed, with stochastic making higher highs and price making lower highs. This suggests that Kiwi bears could push price back down to the bottom of the pattern, which is right around the .7700 major psychological support zone. Do watch out for any potential breakouts, too!
Last but not least is an update on the USD/CHF forex chart I showed y’all recently. As expected, price bounced from the bottom of the rising trend channel and made its way to the top, which appears to be holding as resistance for now. Stochastic is already indicating overbought conditions so sellers might be eager to hop in and push price back down. If so, USD/CHF could move back to the bottom of the range around the .9600 major psychological support. Just make sure you set your stops above the channel resistance if you’re planning on shorting this one.
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.