If you think the trend is your friend, you might wanna look at this rising channel setup on NZD/USD’s 1-hour forex time frame. The pair looks ready to test the channel support near the .7800 major psychological level while stochastic is starting to move up from the oversold area, indicating that a bounce could take place. If that happens, NZD/USD could make its way back up to the channel resistance near the .8000 major psychological level. For the Kiwi bears out there, you could wait to short at the top of the channel or wait for a downside break of support!
Looks like NZD/CHF ain’t headin’ north anytime soon! The support turned resistance area, which lines up with the 50% Fibonacci retracement level and the .7550 minor psychological handle, is holding like a boss and keeping the pair’s gains in check. Stochastic is moving down from the overbought area, which means that sellers are in control of price action for now and might push NZD/CHF down to the previous lows at .7340. After all, a bearish divergence appears to be playing out since price made lower highs while stochastic made higher highs.
Breakdown alert! NZD/JPY might be in for more losses, as the pair recently broke below the neckline of its triple top pattern on the daily forex chart. Stochastic is already indicating oversold conditions though, which means that a bounce might take place to the broken neckline support around the 86.00 handle. A break below the current consolidation could confirm that bears are still strong and could push the pair down by as much as 400 pips, which is the same height as the chart pattern.
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.