Breakout artists out there may wanna put EUR/CHF on their watchlist. As you can see on the chart above, a symmetrical triangle pattern is beginning to form on EUR/CHF’s 1-hour chart. The pattern hasn’t been validated yet, though, since the pair has yet to move up. Anyhow, the potential chart pattern is about 100 pips tall. So if the pattern is validated and a breakout occurs, then the resulting down move or up move could potentially last for the same amount.
If you prefer riding the trend, then check out that there ascending channel for NZD/USD. The pair is presently testing the channel’s support area, so you may wanna start looking for opportunities to go long. All the more so, since stochastic is just about to reach oversold territory. The only worrying thing is that the pair was kicked lower again shortly after lifting off, since that could mean strong selling interest.
If you’re more bearish on the euro, then how about that Fibonacci setup on EUR/NZD’s 1-hour chart? The pair finally broke lower past support at 1.5380 before encountering fresh buyers at 1.5040, sending the pair higher. The rejection was so strong that the pair found itself back at the broken support area at 1.5380. The aforementioned former support area then served as resistance, forcing the pair to move lower. However, the bulls were relentless and the pair was pushed back into the 1.5380 handle, which happens to lie between the 50% and 61.8% Fibonacci retracement levels.
Forex Chart Settings:
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.