Intraday Forex Charts Update – Feb. 2, 2016

NZD/CHF: 1-Hour

NZD/CHF 1-hour Forex Chart

NZD/CHF 1-hour Forex Chart

Is NZD/CHF in for more downside moves? Well, looking at that there chart, we can see that the pair has been consolidating into what appears to be a rising wedge, which is usually considered a bearish forex chart pattern. Our technical indicators seem to disagree, however, since stochastic is indicating oversold conditions while the moving averages are in uptrend, with the 200 SMA acting as dynamic support. Anyhow, if the bottom of the wedge is broken with convincing and sufficient bearish momentum, then the pair may likely move lower for around 200 pips since that is roughly the height of the chart pattern.

NZD/USD: 1-Hour

NZD/USD 1-hour Forex Chart

NZD/USD 1-hour Forex Chart

NZD/USD has been trading sideways while trapped inside a 120-pip trading range or rectangle, with resistance at the 0.6550 minor psychological level and support around the 0.6430 handle. Presently, price is making its way to the bottom of the chart pattern to potentially test the support area around 0.6430. And there’s a good chance that buyers will be enticed to start nibbling since stochastic is already indicating oversold conditions. As for the moving averages, they’re presently indicating an uptrend, but they’re oscillating, so they’re not really helping much.

NZD/JPY: 1-Hour

NZD/JPY 1-hour Forex Chart

NZD/JPY 1-hour Forex Chart

Price is currently on its way down to test that there ascending channel’s support area, so y’all better get ready since one of the most conservative ways to play an ascending channel is to look for buying opportunities near the bottom of the channel. Our technical indicators also seem to support further moves to the upside since stochastic has just reached oversold territory while the moving averages are currently in uptrend mode. Do note that there’s a chance that price may not test the channel’s support area, though, since the 100 SMA may potentially act as dynamic support. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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