If you think the trend is your friend, then you should feast your eyes on USD/JPY’s 1-hour forex chart. The pair has been forming higher highs and higher lows, creating a rising trend channel. At the moment, price is stalling around the middle of the channel at the 120.00 major psychological level, which already seems to be holding as support. Stochastic is indicating oversold conditions anyway so dollar bulls might charge anytime soon. If not, USD/JPY could still make a move towards the bottom of the channel near the 119.50 minor psychological support.
Looks like a reversal is underway for USD/CHF, fellas! If you’ve missed the actual breakout from the double bottom neckline on the pair’s 1-hour forex chart, don’t fret. You could have a chance to hop in the potential uptrend, as price is making a quick pullback to the broken neckline resistance around the .9750 minor psychological level. Stochastic has started to move higher, which means that buyers are regaining control of price action and that the rally might resume. If so, USD/CHF could still be in for around 300 pips in gains, which is around the same height as the chart formation.
Now here’s a sweet break-and-retest situation about to play out on GBP/USD’s 1-hour forex chart. The pair just recently broke below support around the 1.4750 minor psychological level and dipped to a low of 1.4580 before showing signs of a retracement. Using the handy dandy Fib tool on the latest swing high and low reveals that the 50% retracement level is right smack in line with the broken support. Stochastic is already indicating overbought conditions though, which means that pound bears are eager to let the selloff resume.
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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.