I spy with my cool, blue eyes a triangle breakout in the making! That’s right, USD/CHF is chillin inside what looks like a symmetrical triangle on the 1-hour chart. If you’ve read the School of Pipsology, then you’ll know that the pattern suggests a breakout in either direction. It still has some way to go before reaching the end of the triangle, but it might be cool if you have a trading plan in place before it breaks out!
Trend traders huddle up! USD/CAD is testing a rising channel support on the 1-hour chart, which also happens to line up with the 1.3150 minor psychological handle. What makes this setup interesting is that the channel support also lines up with the 100 SMA. Oh, and check out stochastic hanging around the oversold levels! A long trade at current prices could get you a good reward-to-risk ratio especially if the pair pops up to its previous highs. Just make sure to place your stop losses well below the support areas that we’re looking at!
Can’t get enough of trend trades? Here’s another one for ya! EUR/NZD is also testing a rising channel support on the 1-hour time frame while stochastic is chillin’ like a villain on the oversold territories. As with USD/CAD’s chart above, buying at current levels presents the best reward-to-risk ratio. If you’re one of them euro bears though, then you can always wait for a break below the pattern (and even a retest) before shorting this one.
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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.