We’re taking another stroll down memory lane in today’s intraday charts update since we’ll be checking up on our old setups for EUR/GBP and CHF/JPY. And quite naturally, we’ll be lookin’ for fresh plays as well.
If y’all can still recall, we found that there symmetrical triangle back on May 11. And back on May 16, the pair was hesitating at 0.8590, so we were waiting for a pullback to the 38.2% Fibonacci retracement level, which sits just below the key price level at 0.8530.
Well, check that out, dawg. As y’all can see, the pair found buyers right at 0.8530 and bounced higher for over 200 pips before going back down by around 90 pips. So, if y’all caught a ride when the pair broke out of that triangle, then added when the pulled back to 0.8530, and then punched out near the most recent peak, then y’all are probably richer by 500+ pips by now. Aww, yea!
Anyhow, if we connect all them recent peaks and troughs, then we get us a fresh ascending channel to play with. The pair just recently bounced from the channel’s support area, so y’all better think quick about jumping in with a long.
However, it may be prudent to wait since stochastic is already signaling overbought conditions and all that, so the pair may move back down again to test the channel’s support area soon. And if the pair does move higher. then just make sure to keep an eye on how the pair reacts to the area of interest at 0.8740.
Also, do note that there’s currently a chance for a downside breakout, although the pair needs to clear 0.8630 and then 0.8590 before a downside breakout is validated.
We last took a look at CHF/JPY back on May 26. And it sure took its sweet time, but CHF/JPY finally reached the channel’s support area and then promptly bounced back up.
The pair hasn’t quite reached the mid-channel area yet, so y’all better think quick if y’all wanna jump in. But for the more conservative traders out there, y’all may wanna sit this one out for a while. After all, stochastic is already signaling overbought conditions and all that. Moreover, resistance appears to have formed at 114.80, which is just above the mid-channel area.
And since them moving averages look like they’re about to cross-over into downtrend mode, there’s also a chance that bears may take control and attempt a downside channel breakout. Them bears need to smash past 112.80, though. Anyhow, just remember to practice proper risk management, a’ight?
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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.