As you can see on the chart above, GBP/NZD is consolidating on what looks like a bullish pennant on the 4-hour time frame. The School of Pipsology tells us that pennants like these usually signal trend continuation. Thing is, the 1.7750 psychological handle could keep a lid on bullish bets. If you’re looking to buy this pair, then you might want to wait for a break above the pennant as well as the 1.7750 MiPs (and maybe even an SMA crossover) before placing your orders. If you’re into conservative entries though, then you can also wait for a retest of the 1.7750 handle in case the pair does see an upside breakout.
Speaking of break-and-retest plays, NZD/CAD is now back at the .9500 major psychological handle, which is near the ascending triangle resistance that it had broken a couple of days back. This time around the level is being supported by a rising trend line and 100 SMA retest. Not only that, but stochastic is also popping up an oversold signal. Are we about to see another leg higher for NZD/CAD? Aggressive Kiwi bulls can buy the pair at current levels, while more conservative traders can wait for a possible visit to the .9400 area nearer to the trend line before placing orders. Whatever your entry strategy may be, make sure you practice good risk management on your trade!
Last one up for this batch of charts is an easy peasy range play on NZD/USD’s daily time frame. As we’ve identified a few days back, the .7000 major psychological handle is holding up pretty well against the bears. Now that the pair is consolidating around the MaPs and 200 SMA levels and stochastic has just crossed in the oversold territory, it won’t be long before forex bulls take notice. Buying at current levels with stops just below the range support would give you a good reward-to-risk ratio especially if you aim for the previous highs around .7400.
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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.