Here’s a simple range play on NZD/USD’s 1-hour forex chart. The pair has been pacing back and forth between support around the .8425 level and resistance at the .8500 major psychological mark. It is testing the bottom of the range at the moment while stochastic is indicating oversold conditions, which suggests that a bounce might take place. Kiwi bulls could push the pair back up to the top of the range but, if sellers jump in right away, price could make a break of support and head further south!
Is that a rising trend channel forming on USD/JPY’s 4-hour forex time frame? Price has been making higher lows and higher highs, with the pair gearing up to make another test of the channel resistance. At the same time, stochastic has reached the overbought area, which means that the rally is about to turn. If resistance around the 103.50 minor psychological mark holds, price could make its way back to the bottom of the channel near 102.00. However, if dollar bulls refuse to give up, an upside channel break might be in the cards.
Now this one’s for the position traders out there! AUD/JPY is still moving inside an ascending triangle pattern on its daily chart, but it looks like a breakout might happen sooner or later as the consolidation is getting tighter. Which way will it go? For now, price is testing the triangle resistance near the 96.00 major psychological level, but stochastic seems to be suggesting that a quick selloff is still possible. Whichever way this pair breaks out, the resulting long-term move could last by as much as a thousand pips, which is the same height as the triangle pattern.
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.