After that strong bounce off the channel support, could AUD/NZD be headed for the resistance? Stochastic is already indicating overbought conditions, which means that bears could take control of price action soon and possibly push AUD/NZD back to the bottom of the channel near the 1.0650 minor psychological support. However, if buyers refuse to give up, the pair could move all the way up to the channel resistance at the 1.1000 major psychological level.
Finally some movement on NZD/CHF! The pair had been stalling at the top of the rising channel on its 4-hour forex time frame for quite a long while already, before breaking below consolidation and edging closer to the mid-channel area of interest. Stochastic has just moved out of the overbought zone, indicating that further declines could be in the cards for this pair. But before even reaching the oversold area, the oscillator seemed to change its mind and reflect a return of buying pressure.
Here’s another pair that’s hovering around the mid-channel area of interest. GBP/AUD appears to be finding support around the 1.8200 level, which held as resistance in the past. Stochastic is already moving out of the oversold zone, suggesting that the pair could soon head north. If the middle of the channel holds as support, price could make another test of the channel resistance at the 1.8400 mark. But if support at 1.8200 gives way, GBP/AUD could head to the bottom of the channel near 1.8000.
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.