NZD/CHF has been moving up and down inside an ascending channel on its 1-hour forex chart. Now, the basic way to play an ascending channel is to look for support near the bottom of the channel. And as y’all can see, price is currently moving closer to the bottom of the channel. Will support form soon? Perhaps. After all, the bottom of the channel lines up nicely with the 0.6390 handle, a price area of significant market interest. Stochastic is also currently in oversold territory, so forex traders who are bullish on the pair may be exhausted already.
Check out this massive ascending triangle on GBP/NZD’s 1-hour forex time frame. Admittedly, this ain’t exactly an intraday setup, but I just couldn’t resist showing this to y’all. In any case, since this is a bullish forex chart pattern, our directional bias is therefore also to the upside. And if the pattern does break, we’ll probably see a 1,200-pip move since that is roughly the height of the triangle. I just have to note that there is also a chance that price will breakout to the downside, though, so make the necessary preparations for that scenario as well.
This here is another ascending channel. The main difference between this one and the one for NZD/CHF is that price is already testing the bottom of the channel. And as can be seen from the chart, support at the 0.8550 minor psychological area seems pretty solid since it was already tested twice before, so there’s a good chance that price will be going back up soon. The moving averages just recently crossed-over into downtrend mode, which is bad, but at least the stochastic oscillator is already indicating potentially oversold conditions, so we may see some buyers coming in soon.
As usual, make sure to practice proper risk management should you find a trade based on any of these charts.
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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.AUD/CAD 1-hour Forex Chart