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