Feeling bearish on the comdolls lately?
I’ve got a couple of trend channel setups you might wanna see on AUD/NZD and NZD/CHF!
This pair has been cruising inside a descending channel with its lower highs and lower lows on the 4-hour time frame.
Price is currently testing the channel top near the 1.0750 minor psychological mark, and technical indicators suggest that sellers could jump in right here.For one, Stochastic has been indicating overbought conditions for a while, which means that buyers are exhausted and could use a break. If sellers take advantage, AUD/NZD could slump back to the support levels at the channel bottom or mid-channel area of interest.
At the same time, the 100 SMA is below the 200 SMA to confirm that resistance is more likely to hold than to break. However, it’s worth noting that the pair is trading above both moving averages as an early indicator of bullish pressure.
Just make sure you watch out for bullish candlesticks around the channel top to gauge if an upside breakout is happening!
Now this one’s looking like a neat trend play, too!
NZD/CHF is also trending lower inside a falling channel on its daily time frame, and price is testing the resistance close to the .6400 handle. Will it hold?Technical indicators are suggesting so, as the 100 SMA is below the 200 SMA while Stochastic is in the overbought region. These are giving off pretty strong bearish vibes, especially once the oscillator starts turning south.
It’s worth noting that the top of the channel is right smack in line with the 61.8% Fibonacci retracement level, which adds to its strength as resistance.
If this area is enough to keep gains in check, NZD/CHF could tumble back to the swing low or the channel support closer to the .6000 major psychological mark.