Looks like EUR/NZD is gearing up for a strong breakout! On its 1-hour forex time frame, the pair has formed a symmetrical triangle pattern, as it made higher lows and lower highs. Price is hovering around the top of the triangle and ready to test resistance while stochastic is almost in the overbought zone. A quick selloff could lead to a test of the triangle bottom around the 1.6100 major psychological mark, which might hold as support. If you think a breakout is bound to take place soon, you could set your long orders above the 1.6200 mark or your short orders below the 1.6100 handle.
If you’re more of a range trader, then you should have a look at this potential forex setup on EUR/AUD’s 1-hour time frame. Price has been bouncing back and forth between support around the 1.4380 level and resistance at the 1.4550 minor psychological level. At the moment, the pair appears poised to test the top of the range while stochastic is indicating overbought conditions. This means that a selloff back to the bottom of the range or at least until the mid-channel area of interest around 1.4460 might happen. Just make sure you set those stops right in case the pair attempts to break out!
Trend traders, huddle up! EUR/GBP is currently testing the long-term falling trend line seen on its daily forex chart and may be due to resume its downtrend soon. The pair has pulled up to the 100 SMA, which has also been acting as a dynamic resistance area recently, while stochastic has just reached the overbought zone. The oscillator hasn’t quite crossed down yet so there may be a bit of buying pressure left. If the .7950-.8000 psychological levels hold as a ceiling, EUR/GBP could fall back to its previous lows around the .7750 area or perhaps create new lows.
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.