Pullback traders huddle up! USD/CHF is currently lollygagging between the 1.0050 – 1.0100 area, which isn’t surprising since the zone has served as a legit support from mid-November to December. What makes the pair’s current prices more interesting is that it also lines up with a 200 SMA retest near some serious Fibonacci retracement levels. Think the Grenback is in for more losses against the franc? Read up on using Fibs to enter trades if you haven’t done it yet!
Breakout alert! AUD/JPY has not only broken above the 87.00 range resistance that had been holding since mid-January, but it’s also currently re-testing the level after slipping from the 87.50 mark. Are we looking at a resistance-turned-support situation over here? Buying at current levels is a good idea if you believe that the pair has established an upside breakout. If you’re one of them fakeout traders though, then you could also wait for a couple of candlesticks to close below the range resistance and trade a possible drop back down to the 86.00 mid-range level or even the 85.50 range support area.
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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.