This one’s for the euro bears (or pound bulls) out there. As y’all can see, EUR/GBP has been gracefully trending lower while respecting a descending channel. And lucky us since the pair is currently making its way higher and is about to test the channel’s resistance area, so y’all better start looking for opportunities to go short, especially since stochastic is already signalling overbought conditions.
EUR/CAD smashed through a rising trend line with convincing momentum a few days ago. However, the pair encountered fresh buyers at 1.4380 and was pushed higher. And if we use the Fibonacci tool, we can see that the 50% retracement level seems like a conservative pullback area to watch since it line up with 1.4530, a price area with significant market interest. Also, if (or when) price does get there, the 200 SMA could potentially act as dynamic resistance. There’s a risk that the pair will disregard all the Fibonacci retracement levels and climb all the way up to test the broken trend line, though. So make sure to practice proper risk management, okay?
Not particularly bearish on the euro? Then how about that there ascending channel for EUR/CHF? Well, it’s not really just a plain vanilla channel pattern since we’ve also got a Fibonacci play going on. Anyhow, the pair has been moving higher inside an ascending channel. However, the pair already seems hesitant to go lower. And if we apply our handy Fibonacci tool, we can see that current price levels line up with the 61.8% retracement level, so there’s chance that the pair would go back up again without testing the channel’s support area. Moreover, stochastic has already reached oversold territory, so buyers may start jumping in sooner or later.
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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.