Confluence, baby! USD/CHF looks ready to make a pullback to the area of interest visible on the pair’s 1-hour forex time frame before resuming its climb. The former resistance around the .9400 major psychological level lines up with the 38.2% Fibonacci retracement level and is near the rising trend line connecting the recent lows of price action. A deeper pullback could last until the 50% Fib which coincides with the 100 SMA or the 61.8% Fib which is around the 200 SMA. Once the uptrend resumes, USD/CHF could make its way back up to the previous highs around the .9500 major psychological level. But if a breakdown from the trend line takes place, it could be a sign that a downtrend is underway.
Told y’all the channel resistance was gonna hold! As I shared in yesterday’s Chart Art, USD/JPY was headed for the top of the descending channel on its 1-hour forex chart and that it could resume its selloff from there. Price is now headed towards the bottom of the channel around the 121.50 minor psychological level, although it seems to be finding support at the mid-channel area of interest. Stochastic is indicating oversold conditions, which means that a bounce back to the channel resistance might still be possible. However, the 100 SMA is treading below the 200 SMA, suggesting that the selloff could carry on.
Is Cable ready to bounce? GBP/USD is already testing the rising trend line on its 4-hour forex chart while stochastic is starting to turn from the oversold region. In addition, the trend line lines up with the 50% Fibonacci retracement level and the 200 SMA, which makes it a pretty strong support area. The 100 SMA is above the 200 SMA anyway, indicating that the uptrend is likely to continue. If so, GBP/USD could climb to its previous highs at 1.5930 and beyond. However, if sellers take over, a break below the trend line and Fib levels would suggest that a downtrend is in the cards.
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