Back on Tuesday, we were lookin’ to go long on GBP/CHF while the pair was at 1.2380. Well, as y’all can see, our bullish bias paid off real well, since the pair higher and almost reached 1.2600. Unfortunately, them bulls ran out of steam, and so the pair fell back again. Still, most of y’all were probably able to grab between 100 to 190 pips, depending on how y’all trail your stops, which ain’t all that bad for short-term setup.
And after taking the most recent price action into account, it looks like a fresh symmetrical-ish triangle has now formed. A symmetrical-ish triangle could break in either direction, so we don’t really have a directional bias. Y’all may therefore wanna prepare for both an upside and a downside scenario. In any case, the base of the triangle pattern is about 340 pips tall. A breakout in either direction could therefore potentially last for the same amount. Just make sure to keep an eye on 1.2600 and 1.2690, if an upside breakout occurs. If a downside breakout occurs instead, then just keep an eye on 1.2380 and 1.2320. Those are all price area of interest. So y’all can’t just chillax until and unless the pair smashes past them with great momentum. Know what I’m sayin?
Back on January 26, we was lookin’ for an opportunity to go long on NZD/CAD since the pair was at 0.9490, which happened to line up with the 38.2% Fibonacci retracement level. As y’all can see, 0.9490 held but the pair opted to trade sideways instead of climbing higher. Anyhow, if we connect the peaks and the troughs, we can see that the pair is forming a descending triangle. However, that’s whack, since descending triangles are bearish continuation patterns that usually form at the end of downtrend. But, hey, we’ll take what we can get. The triangle is about 110 pips tall, so a downside breakout may have enough momentum to move for the same amount. But since our Fibonacci play is still active and the pattern did form in an uptrend (and after an upside channel breakout, too), we might as well consider an upside breakout scenario also. Just keep an eye on the price areas of interest at 0.9600 (if long) and 9400 (if short). And as usual, just make sure to practice proper risk management, a’ight?
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.