Last time we checked up on GBP/CHF was back on February 23. And back then, the pair was milling about at 1.2600, so I told y’all that there’s therefore a chance that the pair may fall back down all the way to the channel’s support area. And as y’all can see, the pair has already fallen for over 100 pips, as them bears gun for the channel’s support area, which should be at or near the 1.2450 minor psychological level. Y’all therefore better get ready to start lookin’ for opportunities to go long soon.
However, stochastic is already indicating oversold conditions and all that. There’s therefore a small chance that the pair may move back up again without ever reaching the channel’s support area. Going long while the pair is still some distance away from the channel’s support area is extra risk, though. So only the most gangsta forex traders should try doing that. Also, there’s a small chance for a downside breakout, given that 1.2600 is well defended. A downside break needs to clear 1.2350 before it can be confirmed, though. So just keep that in mind, a’ight? And as usual, just make sure to practice proper risk management.
Back on February 21, AUD/CHF was at 0.7730 while hugging the support area of an ascending channel that we’ve been playing since February 13. As such, we was lookin’ to go long on the pair. Although we were kinda wary on how the pair would react to 0.7760. Well, as y’all can see on that there chart, the pair did move higher for about 70 pips. However, them bears were well entrenched at 0.7760, so they were able to push the pair back down.
Anyhow, we’ve updated our ascending channel to take the most recent price action into account. And, well, the pair is currently at the channel’s support area, as y’all can see. Stochastic is also signaling oversold conditions and all that. Moreover, them moving averages are currently in uptrend mode. Today’s main play is therefore to look for an opportunity to go long. However, 0.7760 is really well-defended, so be prepared for a downside channel breakout as well. And if a downside channel breakout happens, don’t chillax until the pair smashes past 0.7630. Before the pair does that, there’s a chance that the breakout may still end up as a fakeout. Know what I’m sayin?
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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.