Is NZD/JPY in for more downside moves? Well, given that a rising wedge seems to have formed on its 1-hour chart, there’s a better-than-average chance that it may. Moreover, tthe moving averages have recently crossed-over into downtrend mode while stochastic is signalling overbought conditions. And if a downside breakout does occur, then the pair may have enough bearish momentum for a 280-pip move, based on the height of the forex chart pattern.
After dropping sharply, GBP/USD has been slowly clawing its way back up while trapped in that there ascending channel. And presently, price is testing the channel’s support area, so y’all better start looking for opportunities to go long, especially since a bullish hidden divergence has formed, as I marked on the chart above. Just be sure to practice proper risk management since stochastic has just recently left overbought territory, so some bears may try to send the pair lower for a downside channel breakout.
EUR/NZD has been consolidating ever tighter as bulls and bears fought it out in its 1-hour chart, forming a symmetrical triangle pattern in the process. A symmetrical triangle means that the pair is just as likely to break out to the upside as it is to the downside, so make sure to prepare for both scenarios. And if or when a breakout does occur, then the resulting rally or selloff could potentially last for about 380 pips.
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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.