Intraday Forex Charts Update – Mar. 21, 2016

NZD/CAD: 1-Hour

NZD/CAD: 1-Hour Forex Chart

NZD/CAD: 1-Hour Forex Chart

First up for today’s forex chart pattern + Kiwi double special is that there symmetrical triangle for NZD/CAD. A symmetrical triangle consolidation pattern means that bulls and bears are about even, so price could break out in either direction. If a breakout does occur, then the resulting rally or sell-off would probably have enough momentum for a 150-pip move, based on the height of the pattern. However, do note that the moving averages are indicating a downtrend while stochastic is moving down without having reached the overbought area, which implies strong selling interest. Also, if you zoom out to the higher times or scroll to the left, you can see that the pair has been in a downtrend since December, so the path of least resistance seems to be to the downside.

NZD/JPY: 1-Hour

NZD/JPY: 1-Hour Forex Chart

NZD/JPY: 1-Hour Forex Chart

Don’t fancy a breakout play? Then how about this trend play for NZD/JPY? And as I always say almost every time I find a descending channel setup, one of the more conservative ways to play a descending channel is to look for selling opportunities near the top of the channel, which is where price is currently at, so lucky us. Looking at our technical indicators, the moving averages are currently in downtrend mode while stochastic is just about to reach overbought territory, so some sellers may be enticed to jump in soon enough. The way price is sticking to the channel’s resistance area makes me suspect that the bulls are attempting an upside channel breakout, though, so make sure to prepare for such a scenario as well.

NZD/CHF: 1-Hour

NZD/CHF: 1-Hour Forex Chart

NZD/CHF: 1-Hour Forex Chart

Lastly, we have that there potential inverse head-and-shoulders pattern for NZD/CHF, so sound the reversal alert. If the neckline at 0.6640 is broken with sufficient and convincing momentum, then the pattern will be validated and may potentially move higher for around 140 pips since that is the height between the pattern’s head around the 0.6500 major psychological level and its neckline. Be careful, though, since the moving averages have just recently crossed-over into downtrend mode while stochastic is still pointing down, so bears may not be quite out of steam just yet. As usual, 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.