NZD/CHF has been consolidating inside a 100-pip trading range or rectangle, with resistance at the 0.6700 major psychological level and support at 0.6600, which is another psychological level. Presently, price is making its way to the bottom of the forex chart pattern to potentially test the support area around 0.6600. And there’s a good chance that buyers will start nibbling in since stochastic is already indicating oversold conditions. The moving averages had just crossed-over into downtrend mode, though, but price action indicates that the overall trend is still up. But get ready for a downside breakout just in case. And make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
Looks like a descending channel has clearly formed on NZD/USD’s 1-hour forex time frame. And you know I’m gonna say it, but I’ll say it anyway. The most conservative way to play a descending channel is to look for resistance near the top of the channel. Unfortunately, the pair is already at the mid-channel area. Stochastic has already reached oversold territory, though, but I should warn aggressive traders from thinking about going long here since the bearish momentum seems rather strong and the moving averages are in downtrend mode to boot. If you have to take a trade, make sure to wait for confirmation that support has formed at the mid-channel area, or better yet, wait for price to test the bottom of the channel.
Okay, I admit that this one is not as advertised since it’s only a potential rectangle or trading range since the resistance area at the 1.6500 major psychological level has only been tested once. Although the same price area has seen very significant market interest in the past if you zoom out to the higher time frames. Also, the support area around the 1.6250 minor psychological level has been tested several times already, so I think we have a good case for a rectangle to form here. We’ll also soon find out if this potential rectangle is going to be validated or violated since price is currently making its way up to test (or break past) the resistance area. Stochastic, at least, is already at the overbought area, so perhaps sellers may be enticed to start coming in soon.
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