NZD/JPY is currently trending lower while trapped in that there descending channel. And if you’re waiting for a chance to jump in, then now would probably be a good time since the pair is currently testing the channel’s resistance area and stochastic is already pointing down and moving away from overbought territory. Also, the moving averages are coming closer together for a potential cross-over into downtrend mode.
As you can see on that there chart, the pair has been bouncing up and down inside a 100-pip trading range or rectangle pattern, with resistance at 108.10 and support at 107.10. If you’re planning to trade within the range, then you better start looking for opportunities to go short since the pair is currently testing the rectangle resistance area while stochastic is beginning to push away from the overbought area. But if you’re waiting for a breakout, then an upside breakout is more probably at this point since the moving averages are in uptrend mode, with the 100 SMA apparently acting as dynamic support.
Here’s another channel for the trend hunters out there. This time, we’re looking at an ascending channel on CAD/CHF’s 1-hour chart. Price is presently gunning for the channel’s support area, but seems to be meeting buyers at the mid-channel area, so there’s a chance that the pair could move higher without testing the channel’s support area, especially since stochastic is also about to reach oversold territory. 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?
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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.