NZD/CHF has been rather kind to us this week, giving us profitable setups again and again. And congratulations to those who found a trade based on Wednesday’s intraday forex charts update. Anyhow, for today’s play, we’re still hoping that the trading range or rectangle on NZD/CHF’s 1-hour forex chart will hold, and that NZD/CHF will keep on giving like a forex version of Santa Claus. Price is currently making its way down to the support area around the 0.6090 handle and stochastic is pointing down, but it still hasn’t reached the oversold region, so there’s a good chance that the pair will reach the support area. The only worrying thing is that the moving averages are now clearly in uptrend mode, with the 200 SMA acting as dynamic support, so be careful since an upside breakout could potentially occur.
After two attempts, NZD/CAD managed to break past resistance at the 0.8470 handle, but it immediately found a lot of sellers just beyond the said resistance area. As a result, a potential ascending channel has formed on NZD/CAD’s 1-hour forex chart. It’s only a potential ascending channel because price is currently milling about at the bottom of the channel, and has yet to move up to the top before the forex chart pattern is confirmed. Incidentally, if we apply the Fibonacci tool, we can also see that price is consolidating just above the 50% retracement level, which also lines up rather closely with the previous resistance area around the 0.8470 handle. The moving averages are also indicating an uptrend, which is nice, but stochastic is already pointing down and moving away from the overbought region, which is worrying.
Price has been moving inside a descending channel since last week. Currently, price is also testing the top of the descending channel. And as y’all should know by now, the most conservative way to play a descending channel is to look for resistance near the top of the channel, so a trading opportunity may present itself soon. Looking at our technical indicators, we can see that the moving averages have already crossed-over into downtrend mode, which is good. Stochastic, meanwhile, is pointing up and moving closer to the overbought territory once more, so forex traders who are bullish on the pair may be getting exhausted soon. As usual, make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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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.AUD/CAD 1-hour Forex Chart