For today’s intraday charts update, we’ll be checking up on our old setups for EUR/GBP and CHF/JPY. And it goes without saying that we’ll be looking for fresh setups as well.
Back on May 11, we identified that there symmetrical triangle on EUR/GBP’s 1-hour chart. A symmetrical triangle could break in either direction, so we didn’t really have any directional bias.
The pair ended up staging a topside breakout, as y’all can see. And if ya were real gangsta and jumped in at the breakout point, then you’re probably 100 pips richer by now. But if you were more conservative and waited until the key area at 0.8530 got broken, then you still probably have 60 or so pips. Aww, yea! We got bank, dawg!
Anyhow, we’re still bullish on the pair. However, the pair appears to be hesitating at the area of interest at 0.8590. Moreover, stochastic is already signaling overbought conditions and all that. As such, there’s a good chance that the pair may pull back before spurting higher. Know what I’m sayin?
So for today’s play, we’ve got us a Fibonacci retracement setup in order to take advantage of a potential pullback. All retracement levels are valid pullback areas, but the 38.2% retracement level is the key pullback area to watch. After all, it sits just below the area of interest at 0.8530.
And if the pair does pull back and if support does hold, then them bulls will likely be gunning for 0.8630 next.
CHF/JPY is the gift that keeps on giving. Way back on April 27, we identified a bullish flag, which y’all can still see on the chart above. That was a profitable setup.
However, we then observed that the pair appeared to be hesitating at 113.70 back on May 4, so we had us a Fibonacci retracement play and waited for a pullback. And as y’all can see, the pair did pull back all the way to 112.90, which lies around the 50% retracement level, before pushing back up again.
If you’re still holding on to our original bullish flag setup, then congratulations on harvesting a whopping 260+ pips. And if you were able to jump in when the pair retraced, then congratulations on bagging another 190+ pips. That’s a grand total of 450+ pips! Aww, yeah! Time to buy new treads and bling, brah!
Anyhow, the pair now appears to be hesitating again, so we’ve got another Fibonacci setup just in case the pair starts pulling back again. And the key pullback levels to watch are the 50% and 61.8% retracement levels. After all, the key area of interest and previous resistance level at 113.70 happens to sit right smack between the two.
As usual, just remember to practice proper risk management, a’ight? Also, y’all may wanna think about bailing yo longs if the pair smashes past 112.90 on strong bearish momentum.
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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.