Up, up, and away! This is the updated chart of the ascending channel setup on EUR/NZD’s 1-hour forex chart that we identified yesterday. As y’all can see, support at the 1.6400 major psychological level held and price went up for about 160-170 pips in our favor. Ah, such delicious pips! Anyway, there is still room for further moves to the upside since the mid-channel area hasn’t even been reached yet. Stochastic just came off the overbought region but it’s beginning to point up again, so forex traders who are bullish on the pair may not be exhausted yet.
Are ya gangsta enough to take on this counter-trend setup? If ya are, then listen up! NZD/CAD has been climbing steadily inside an ascending or rising channel on the 1-hour forex time frame. Currently, the pair seem to be grinding lower after testing the top of the channel. Looking at our technical indicators, the moving averages are oscillating, which means that there is no clear trend yet, but given that price seems to be respecting the channel, the minor trend is likely up. one thing worth noting is that the stochastic is moving up from oversold territory, so there’s a chance that forex traders who are bullish on the pair may be in control already. If that is the case, then there is a chance for an upside channel breakout too.
If a countertrend setup is too exciting for ya, then check out this conservative descending channel play on NZD/CHF’s 1-hour forex chart. As y’all know, the conservative way to play this forex chart pattern is to look for resistance near the top of the channel. And lucky us since price is finally moving down from the top of the channel. Incidentally, the top of the channel lines up quite nicely with the 0.6350 minor psychological level, which is a price area of significant market interest in the past. The moving averages are currently in downtrend mode, but they’ve been oscillating, which means that price is still consolidating. Stochastic, though, is pointing down, which indicates that the bears may still be in control.
As usual, make sure to practice proper risk management should you find a trade based on any of these charts.
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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.