Still going strong, brotha! The rising channel on NZD/USD’s 1-hour chart is still very much intact as the pair remains on a steady uptrend. But with stochastic already in the overbought area, we could be in for either a retracement or a reversal. If the Kiwi bulls are set on keeping the uptrend going, NZD/USD could simply pull back to the bottom of the channel before resuming its climb. But if Kiwi bears are much stronger, NZD/USD could be in for a downside breakout!
USD/JPY has been in tight consolidation mode lately, but I’m seeing a shallow rising channel on the 4-hour timeframe. The pair has been forming higher highs and higher lows, but it can’t seem to bust out of its range. Stochastic is pointing down, suggesting that the pair could fall back to the bottom of the channel, which could act as support yet again. Take note that the bottom of the channel lines up with the 77.00 major psychological level, which is usually respected by yen pairs.
Last but definitely not least, let’s take a look at the falling channel that seems to be forming on USD/CAD’s 1-hour chart. The pair has been drawing lower highs and lower lows lately, and it seems poised to test the bottom of the channel again. But can USD/CAD still dip much lower? Stochastic already turned from the oversold area and is signaling that Loonie bears are about to pounce. Still, the bottom of the channel coincides with parity, which could act as strong support for USD/CAD.
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.