NZD/CAD has been consolidating while tapering into a point, forming a symmetrical triangle pattern in the process. A symmetrical triangle means that bulls and bears are playing a game of tug-of-war but neither side is really winning, which means that price could break out in either direction. And if a breakout does occur, then the resulting rally of selloff would likely have enough steam for a 350-pip move, based on the height of the forex chart pattern. 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?
NZD/USD was finally able to push past support at the 0.6840, but found fresh buyers at the 0.6750 minor psychological level and was pushed back to the support-turned-resistance level at 0.6840. The pair attempted to smash past support at 0.6750 again, but failed yet again, giving us a potential double bottom to play with. If price manages to break past the neckline at 0.6840 and validate the pattern, then the pair could potentially move higher for about 90 pips. Do note that there’s a chance that the pair could move lower, however, since stochastic is already indicating overbought conditions. Also, the moving averages are in downtrend mode, and it even looks like the 100 SMA is acting as dynamic resistance.
NZD/JPY has been grinding higher while moving inside an ascending channel. And as I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go long near the channel’s support area. And as y’all can see on the above chart, the pair is just starting to bounce away from the channel’s support area. Looking at out technical indicators, the moving averages have just recently crossed-over into uptrend mode, which is a real confidence booster for our bullish bias. Stochastic is signalling overbought conditions, however, which means that there’s a possibility of a downside channel breakout.
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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.