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GBP/CHF: 4-hour

GBP/CHF: 4-hour Forex Chart
GBP/CHF: 4-hour Forex Chart

First up is a nice and simple pullback play on GBP/CHF. The pair is now lollygagging at the 1.2400 levels after bouncing from the 1.2150 area earlier this month. What makes this consolidation more interesting is that it not only lines up with an area of interest, but it’s also right below the 38.2% Fibonacci retracement and the 100 SMA on the 4-hour time frame. Think the pound is in for more losses against the franc? Shorting at current levels could give you a good reward-to-risk ratio especially if you aim for the previous lows. Be careful not to use tight stops though, as crosses like these tend to be more volatile than the major pairs!

EUR/JPY: Daily

EUR/JPY: Daily Forex Chart
EUR/JPY: Daily Forex Chart

Breakout traders huddle up! EUR/JPY is having a make-or-break situation on the daily chart, as it tries to find momentum from the 122.00 handle. The odds are currently on the bulls’ side thanks to bullish divergence and a near SMA crossover on the daily time frame. On the other hand, the pair hasn’t broken above the falling trend line since mid-2015. Which camp will win this week? A break above said trend line could inspire strong upside momentum, so you might want to keep close tabs on this one in case we see sharp forex price action. Time to bust out your trading plans, brothas!

Forex Chart Settings:

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.