Check out this falling channel holding like a boss on USD/CHF’s 1-hour time frame. This one has been intact for almost an entire month already! Right now, the pair is hovering near the bottom of the channel, as though waiting for dollar bulls to charge again. Stochastic is almost in the oversold region, hinting at a potential bounce. Make sure you set your stop below the channel support if you’re planning to go long!
Now here’s a channel that’s just about to form on NZD/USD. The bottom of the channel has been confirmed as support already, thanks to that bounce from the .8100 area last week, but the top of the channel has yet to be tested. Stochastic is moving up for now so the pair could climb all the way up to the top of the channel. This lines up with the .8300 major psychological level, which suggests that it might hold as resistance.
Last but not least is an update on the EUR/GBP channel I showed y’all a few days back. The pair did bounce from the bottom of the channel around the .8250 minor psychological support and appears poised to test the top of the channel. It’s stalling around the .8300 handle at the moment but stochastic is still reflecting strong buying pressure. Do you think the top of the channel will still hold?
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.