Looking for a trend play? Check out this one on CAD/JPY’s 1-hour forex chart! The pair has been moving inside an ascending channel for the past few weeks, reflecting an ongoing uptrend. Price is on its way back to the channel resistance but it seems to have encountered a bit of resistance at the middle of the channel near the 100.00 major psychological mark. Another test of the channel support around the 99.50 minor psychological level might take place before the climb resumes, but make sure you’re ready to switch biases if the pair makes a strong breakdown!
If you’re up for a retracement, you gotta see this potential pullback on NZD/JPY’s 1-hour forex time frame. The pair recently bounced off support at the 88.00 major psychological level and is currently retreating to the Fib levels marked on the latest swing high and low. The 61.8% Fibonacci retracement level might keep further gains in check, as this lines up with a broken support area near the 90.00 major psychological level. Stochastic is still moving up for now, indicating that Kiwi bulls are in control, but the oscillator is about to reach the overbought zone and allow the bears to take over.
Divergence alert! USD/CAD recently formed lower lows while stochastic drew higher lows on its 1-hour forex chart, creating a bullish divergence right at the bottom of the descending triangle formation. This lines up with the 1.1950 minor psychological level, which might continue to hold as a floor and push USD/CAD back up to the top of the triangle around the 1.2050 minor psychological mark. However, if sellers refuse to give up, the pair could have a shot at breaking below the triangle support and going for a 300-pip drop, which is the same height as the chart pattern.
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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.