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NZD/USD: 1-hour

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

Let’s start off with this simple forex range on NZD/USD’s 1-hour time frame. The pair has been pacing back and forth between support at the .6250 minor psychological mark and resistance around the .6415 level, creating a 165-pip range. Price just bounced off the bottom of the range and is currently stalling in the middle, possibly having second thoughts about heading back to the top. Stochastic is moving down from the overbought area, which suggests that Kiwi bears could come back to play and push price back down towards support. Aside from that, the 100 SMA just crossed below the longer-term 200 SMA, confirming that the path of least resistance is to the downside. Heck, if sellers are strong enough, they could even push for a downside break!

USD/CAD: 1-hour

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

Next up is this neat little retracement setup on USD/CAD’s 1-hour forex chart. The pair recently surged past the resistance around the 1.3300 major psychological level then zoomed up to a high of 1.3417 before showing signs of retreating. Using the handy-dandy Fib tool on the latest swing low and high shows that the 38.2% Fibonacci retracement level coincides with the broken resistance zone, which might now hold as support. In addition, this also lines up with the dynamic support at the 100 SMA, which just crossed above the 200 SMA to indicate a likely continuation of the uptrend. Stochastic is moving out of the oversold zone, reflecting a pickup in buying pressure and suggesting that the pair could head back to the previous highs or beyond.

EUR/NZD: 1-hour

EUR/NZD 1-hour Forex ChartEUR/NZD 1-hour Forex Chart
EUR/NZD 1-hour Forex Chart

Lastly, here’s another triangle breakdown you definitely gotta see! After consolidating inside an ascending triangle pattern, EUR/NZD decided to take the southbound route and break below support. The 100 SMA also crossed below the 200 SMA, indicating that the selloff could gain momentum. Note that the forex chart pattern is approximately 650 pips in height so the resulting downtrend could last by the same number of pips. However, stochastic is just climbing out of the oversold zone, hinting that a pullback to the broken triangle support might be in the cards. If euro bulls refuse to give up, they could even push for a move back inside the triangle and another test of the resistance at the 1.7900 major psychological mark.

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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.