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Retracement time, baby! Last week was all about breakdowns, so I’m keeping my one good eye on the lookout for pullbacks this time.

EUR/CHF

EUR/CHF Daily Forex Chart
EUR/CHF Daily Forex Chart

First up is this huge head and shoulders reversal pattern on the daily time frame of EUR/CHF. The pair already tumbled below the neckline to confirm that a downtrend is underway, but bears could use a retest before heading further south.

Stochastic is pulling back after all, indicating that sellers might need a quick break for now. Using the handy-dandy Fib tool on the latest swing high and low shows that the 50% level coincides with the broken neckline. This also lines up with the 1.1500 major psychological mark, so bears might be waiting to return right there.

NZD/CHF

NZD/CHF 1-hour Forex Chart
NZD/CHF 4-hour Forex Chart

Next up is this descending channel on the 4-hour time frame of NZD/CHF. Now I’ve been watching this pair closely since I had a short position open, but this play was closed early when it hit my adjusted stop loss.

I’m still bearish on this one, though, so I’m on the lookout for a pullback opportunity at the resistance near the .6700 handle. This also lines up with a short-term broken support and the 61.8% Fib.

Stochastic is already indicating overbought conditions, which suggests that buyers are tired, but has yet to turn lower to signal a return in bearish pressure.

AUD/CHF

AUD/CHF Daily Forex Chart
AUD/CHF Daily Forex Chart

Last but certainly not least is this AUD/CHF symmetrical triangle that I know Happy Pip had on her radar. The pair already made a break lower and looks prime for a retest of the broken support.

Stochastic is just climbing out of the oversold region so the pullback could go on for a bit, possibly turning upon hitting the area of interest around .7300-.7400. The chart pattern is approximately 600 pips tall, which suggests that the resulting downtrend could be of the same height.

 

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