First up is a potential descending triangle on USD/CHF’s 1-hour time frame. See, the pair has been clocking in lower highs since the middle of the month but it looks like the bulls are holding the 1.0220 fort pretty well. Before you short the pair like there’s no tomorrow, remember that descending triangles don’t always end up in downside breakouts. In fact, buying at around the triangle support is a good idea if you think that the dollar’s uptrend will continue in the next couple of days. Make sure that the pair reaches new highs first though!
Here’s another breakout opportunity for ya! AUD/USD is sporting what looks like a double bottom on the 1-hour time frame. What makes the setup even more interesting is that the “neckline” around the .7275 area also lines up with the 100 SMA on the chart. Do you think AUD/USD has seen a bottom at .7200? Read up on trading double bottoms like these if you haven’t done it yet but are interested in making trading plans for the setup!
Last one up for this batch of charts is a nice and simple downtrend trade on EUR/CHF. The pair is currently testing the 1.0700 psychological level, which isn’t so far below the 1.0725 mark where the falling trend line and 200 SMA are. Not only that, but I’m already spotting a bearish divergence on the chart! Shorting around the falling trend line resistance is a good bet if you think that the euro will continue to see losses against the franc. If you’re one of them euro bulls though, then you can also wait for a break above said trend line resistance and trade an upside breakout to get pips.
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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.