Yippee ki-yay, forex traders! The ascending triangle that we identified yesterday broke and gave us around 150 pips. Unfortunately, the other setups from yesterday were duds, but that’s okay since GBP/CHF looks like it can still give us more pips.
As y’all can see on the 1-hour forex chart, the pair is currently testing a price area of significant market interest around the 1.5050 minor psychological level. And if resistance does form, then that means that price could potentially stage a pullback. But if a pullback does occur, where will price likely go? Well, if we use our handy-dandy Fibonacci tool, we can see that all three retracement levels are potential candidates, although there’s also a good chance that price will pull back all the way to breakout point around the 1.4900 major psychological level.
There is a balance in the force between the bears and the bulls on NZD/CHF’s 1-hour forex chart since a symmetrical triangle has clearly made its appearance. As a symmetrical triangle, we don’t really have a directional bias since price could break out in either direction. And the moving averages aren’t really helping much since they’re oscillating, although they currently seem to be in downtrend mode. Stochastic is also indicating potentially overbought conditions, but it’s still pointing up, so forex traders who are bullish on the pair may not be completely exhausted yet. In any case, if this forex chart pattern does break, the resulting rally or selloff would probably have enough momentum for a 250-pip move since that is roughly the height of the pattern.
Well, well, well. Looks like price is still respecting this ascending channel that we identified last Tuesday. As y’all already know or should know, the most conservative way to play an ascending channel is to have an upside bias while looking for support near the bottom of the channel. And price seems to be making its way to the bottom of the channel right now.
Looking at our technical indicators, the moving averages aren’t giving a clear signal since they’re oscillating, but stochastic has already reached oversold territory, so forex traders bullish on the pair may start nibbling soon. I’m kinda worried that the pair seems to be having difficulty pushing past the mid-channel area, though, since that could mean that seller interest is somewhat strong, so a downside channel breakout is a possible scenario too. As usual, make sure to practice proper risk management should you find a trade based on this or any of the other 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