Let’s start by checking up on Tuesday’s ascending channel setup on GBP/CHF’s 1-hour chart. Since we last saw it, the pair moved over 70 pips lower before surging higher for over 260 pips and then climbing back down again for about 150 pips. If you’ve been playing this profitable chart since Tuesday, then congratulations. Having said that, the pair attempted an upside channel breakout, but the breakout got faded, which shows that bears aren’t going down easily. And now, price is milling about near the channel’s resistance area. Stochastic, meanwhile, is about to enter overbought territory. There is therefore a better-than-average chance that the bears may attempt to push the pair lower while gunning for the channel’s support area. As usual, however, conservative forex traders should keep in mind that going short near an ascending channel’s resistance area is a counter-trend setup, and is therefore extra risky.
USD/CHF has been recently been trading sideways while apparently respecting resistance at 1.0190 and support at 1.0080. This gives us a 110-pip trading range or rectangle pattern to play with. Presently, the pair is testing the rectangle’s support area. So if you wanna trade within the range, then you better start looking for opportunities to buy. Looking at our technical indicators, however, we can see that stochastic is already signaling overbought conditions. The moving averages, meanwhile, are just about to cross-over into downtrend mode. There is therefore a chance that the pair may stage a downside breakout instead, so you may wanna prepare for such a scenario as well.
Is CAD/CHF in for a downside move? Well, there’s a good chance that the pair may tank, given that a rising wedge has now formed, as y’all can see above. Moreover, resistance at the 0.7600 major psychological level appears to be strong. Just scroll all the way to May or zoom out to a higher time frame, and you’ll see what I’m talking about. Anyhow, if the pair does stage a downside breakout, then the pair may have enough steam for a 110-pip move. Of course, there’s always a chance that the pair may break to the topside instead. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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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.