This range just keeps on giving! As I showed y’all in yesterday’s edition of Chart Art, resistance at the top of USD/JPY’s range held and price headed back towards the bottom near the 117.50 minor psychological mark. This appears to be holding as support as the pair is now making its way back to the top. Price appears to be stalling at the mid-range area of interest for now but stochastic is suggesting that buyers are in control and may be strong enough to push for another test of the range resistance. Better keep close tabs on the 118.50-118.75 area in case it holds as a ceiling once more!
Remember that USD/CHF ascending triangle forex chart pattern I posted a few days back? Well, the pair recently decided to make an upside break, indicating that further gains are in the cards. Before that happens though, price might need to pull back to the Fib levels marked on the 1-hour chart. In particular, the 61.8% Fibonacci retracement level might hold as support since it lines up with the .8800 major psychological handle and the broken triangle resistance. Stochastic is heading lower anyway, which means that sellers are in control of price action for now.
Who’s up to trade a potential reversal? GBP/USD seems to be forming a double bottom pattern on its 4-hour forex chart, hinting that the recent downtrend is already over. The pair has yet to break past the neckline around the 1.5250 minor psychological resistance before confirming the potential reversal, but it seems that stochastic is suggesting another move lower. If pound bears take control, GBP/USD could move back to the previous lows and form another bottom around the 1.5000 major psychological handle.
Slow Stochastic: 14,3,3 100 SMA: Blue line 200 SMA: Red line 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.