Pullback hunters may wanna check out what I’ve got in today’s intraday charts update. As for specifics, I’ve got a couple of Fibonacci retracement setups on EUR/CHF and GBP/CAD. Check ’em!
EUR/CHF has been pulling back recently, as y’all can see. And if we apply our handy Fibonacci tool, we can see that the pair is just about to reach the 50% retracement level.
The 50% retracement level lines up nicely with 1.0890. And you can’t see it on there chart, but 1.0890 is actually a price area with very significant market interest. Just scroll to the left on your own charts or zoom out to the higher time frames and you’ll see.
Do note, however, that there’s also a chance that the pair may gun for the 61.8% retracement instead. After all, it lines up with 1.0870, which has seen some market interest in the recent past. But if bearish momentum is so strong that the pair just blows past 1.0870, then y’all may wanna start thinking about bailing yo long. M’kay?
GBP/CAD has been trending lower lately. And recently the pair smashed past the key area of interest at 1.7650. However, them bulls ain’t finished yet so they pushed the pair higher back to 1.7650. And in the process, we got us a classic break-and-retest setup to play with.
And using our handy Fibonacci tool again, we can see that 1.7650 lines up with the 38.2% Fibonacci retracement level. Moreover, the pair even reached the 50% retracement level and got promptly rejected. That’s obviously a good sign and likely means that them bears are ready to counter-attack.
Looking at our technical indicators, we can see that them moving averages are already in downtrend mode. In addition, the 200 SMA appears to be acting as dynamic resistance. Stochastic, meanwhile, is signaling overbought conditions and all that. Overall, plenty of arguments for resistance to form here. Y’all therefore better start lookin’ for opportunities to go short. Just make sure to practice proper risk management, a’ight?
Also, if bears do resume their offensive, then they’ll likely be gunning for 1.7450 next. But if them bulls somehow win out and the pair goes all the way up to 1.7770, then y’all may wanna think about bailing or even changing bias. 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.