Sup, peeps? For today’s intraday charts update, I’ve got a trading range or rectangle for EUR/CHF and a Fibonacci retracement setup for CHF/JPY on the menu. Get ’em while they’re fresh!
EUR/CHF has been trading sideways with 1.0870 apparently acting as resistance and 1.0800 as support. This gives us a nifty 70-pip trading range or rectangle pattern to play with.
If you’re planning to trade within the range, then just know that stochastic is already signaling oversold conditions and all that. There’s therefore a chance that the pair may move back down again, although the pair has yet to test the rectangle’s resistance area at 1.0870.
And if the pair does start moving back down again without ever testing resistance, then watch out because chances are good that them bears will attempt a downside rectangle breakout attempt. In any case, just make sure to practice proper risk management, a’ight?
If y’all can still recall, we identified a bullish flag on CHF/JPY’s 1-hour chart back on April 27. Back then, we were expecting the pair to break to the topside and then gun for 113.70. Well, check that out, dawg! It took a week, but the pair did get there. Aww, yea! Sweet 150 pips in the bag.
Anyhow, we’re still bullish on the pair, but the pair seems to be hesitating at 113.70. Moreover, stochastic is moving back down after reaching overbought territory. There’s therefore a good chance that the pair may be pulling back soon.
And if we apply our Fibonacci tool, we can see that all retracement levels are valid pullback areas to watch. However, there’s also a slim chance that the pair could go all the way down to test the broken resistance area at 112.20, so do be careful. Also, if the pair smashes past 111.60, then that may be a good sign to bail out of yo longs or even switch bias.
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.