Be careful, Kiwi bulls! NZD/JPY is testing the resistance of the rising wedge pattern forming on its 1-hour forex chart. The pair could make its way back to the bottom of the formation to test support near the 90.00 major psychological level, as stochastic is moving down from the overbought zone and reflecting a return in selling pressure. If the bottom of the wedge holds as support, another bounce back to the top of the chart pattern near the 91.00 handle could take place. Stay on your toes for a potential breakout in either direction as well!
Here’s an update on the GBP/CHF descending trend channel I showed y’all last week! The pair did bounce off the channel support around the 1.4500 major psychological level and seems to be headed for the top near the 1.4650 minor psychological resistance. Stochastic is moving higher but is almost in the overbought region, which means that sellers are ready to take control of forex price action. In that case, another move back to the bottom of the channel might be in the cards. Better set your stop above the 1.4700 handle if you’re thinking of taking a short trade at the resistance.
Support at the 1.4700 major psychological level seems to be holdin’ like a boss for GBP/USD, but will the area of interest at the 1.5000 mark keep gains in check? This potential resistance area lines up with the 38.2% Fibonacci retracement level and a broken support area, and stochastic is hinting that pound bulls might need to take a break soon. If that happens, GBP/USD could head back towards the previous lows at the 1.4700 handle once more. On the other hand, an upside break past the 1.5000 mark could mean a move towards the next resistance near the 1.5200 level.
Forex Chart Settings:
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.