Check out this neat descending triangle pattern forming on NZD/USD’s 1-hour forex chart! The pair is currently bouncing off the bottom of the formation near the .6500 major psychological support and could make its way back to the top. Stochastic is moving higher anyway, which means that Kiwi bears are taking a break and allowing buyers to take control. If you’re bearish on this pair, you could wait for an actual test of the triangle resistance near the .6600 major psychological level and for stochastic to reach the overbought zone before shorting. Just make sure you watch out for signs that a breakout is about to take place!
If you’re looking for a simple range play, then this AUD/JPY forex setup might work out for you. The pair has been pacing back and forth between support at the 89.50 minor psychological level and resistance around 92.25. Price just came off a test of resistance and might be poised for a move back to the bottom of the range, but it seems to be finding support right around the middle. Stochastic is pointing up while the 100 SMA is moving above the 200 SMA, suggesting that another climb might take place. This could lead to another test of resistance or even a potential upside break if Aussie bulls are strong enough.
Looks like this ascending channel on EUR/NZD’s 1-hour forex time frame is still holdin’ up! The pair recently bounced off the bottom of the channel and zoomed right back up to the top, which might continue to keep further gains in check. If you’re in the mood for a countertrend play, this might be a good time to hop in a short trade with a tight stop above the channel resistance or the 1.7000 major psychological mark. Stochastic is pointing down so euro bears are ready to push the pair back down, possibly until the channel support at the 1.6700 major psychological level. Take note, however, that the 100 SMA is still above the 200 SMA so the path of least resistance is to the upside.
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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.