That there is an updated chart of our ascending channel setup from January 26, so it ain’t exactly fresh. Having said that, we was looking to go long on the pair when price was close to the channel’s support area around the 0.7230 handle. And since then, the pair has moved over 80 pips higher before finding resistance at the 0.7300 major psychological level.
Stochastic is indicating overbought conditions and all that already, though. There’s therefore a good chance that them bears will likely try to test the channel’s support area again. Y’all therefore better get ready to start lookin’ for opportunities to go long if or when the pair does finally test the channel’s support area. However, 0.7300 is a price area with very significant market interest, even on the higher time frames. There’s therefore also a chance that them bears would use 0.7300 to stage a downside channel breakout. And if a downside breakout does occur, the pair needs to clear 0.7230 with strong momentum before the break is confirmed. Before then, chances are still good that them bulls will get their second wind, allowing them to fade the break.
If you’re looking for a fresh Swissy setup and/or you’re more bearish on the Swissy, then check out that there descending channel for USD/CHF. As y’all can clearly see, the pair is currently testing the channel’s resistance area and is now making its way back down. Y’all know the drill by now, so start lookin’ for opportunities to go short.
Do be careful, though, since price has been grinding higher recently, as marked by that there rising trend line (purple line). Moreover, price has been closing above them moving averages. And did I mention that them moving averages are just about to cross-over into uptrend mode. Overall, plenty of technical arguments for strong bullish interest and a potential trend change. As such, y’all may wanna wait for a break of that there rising trend line, as well as a strong break past 0.9900 before shorting. In addition, y’all may also wanna consider an upside breakout scenario. The pair needs a strong break past 1.0030 to confirm the topside breakout, though, so y’all can’t chillax till then.
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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.