Check out this range setup forming on USD/JPY’s 4-hour forex chart! The pair is currently testing the resistance around the 120.50 minor psychological level and may be gearing up for another move south. Stochastic is moving down anyway, indicating that sellers are in control of price action for now. In that case, price could head towards the bottom of the range around 118.75 for another potential bounce. If the oscillator reaches the oversold area and starts turning up though, buyers might take over and push for an upside break from resistance.
Can’t get enough of ranges? Here’s another one on GBP/AUD’s 4-hour forex time frame. The pair has been pacing back and forth between support at the 1.9100 major psychological level and resistance at the 1.9450 minor psychological mark. For now, price is testing the bottom of the range and might be ready to make another bounce, as stochastic is moving out of the oversold region. If pound bulls are able to charge, a climb back to the range resistance or at least until the middle near the 1.9300 mark might take place.
If retracements are your thang, then you might dig this pullback setup on USD/CHF’s 1-hour forex time frame yo! The pair recently broke below support around the .9300 major psychological level then dipped below the .9250 mark. From there, price showed signs of retreating, possibly until the Fib levels marked on the latest swing high and low. The 38.2% Fibonacci retracement level lines up with the broken support, which might hold as resistance. Stochastic is climbing but is almost in the overbought area, suggesting that the correction might be a shallow one.
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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.