The symmetrical-ish triangle that we identified on NZD/JPY’s 1-hour forex chart last Wednesday finally broke out to the upside. If you were able to get in at the breaking point, you would probably have around 150-160 by now, so give yourself a pat in the back. If you missed the breakout, then heads up since price seems to have found resistance at the 78.50 minor psychological area, and is now making its way back down. And if we use our handy-dandy Fibonacci tool we can see that all three retracement levels are potential pullback areas, although the 50% retracement level looks to be the most conservative since it lines up nicely with the 77.40 handle, which is a price area of significant market interest.
The descending channel on GBP/NZD’s 1-hour forex time frame that we found last Friday managed to hold, and price finally made its way down, so congratulations on your 480 pips. Currently, price is approaching the bottom of the channel, but buyers are already coming in. The stochastic oscillator is also already pointing up and moving away from the oversold region, so there’s a good chance that price will be making its way back up without actually testing the bottom of the channel. If you’re an aggressive trader, and you’re thinkin’ about going long already, just know that the moving averages are indicating a healthy downtrend, so you’ll be taking a counter-trend trade, which may be a bit too risky.
Price has been moving up and down an ascending channel since late August. And as y’all can see, price has already reached the halfway point, so this setup is not exactly meant for conservative traders since the most conservative way to play an ascending channel is to look for support near the bottom of the channel. In any case, if you plan to make a trade based on this chart, just know that stochastic is already indicating potentially overbought conditions while the moving averages are currently in downtrend mode, although they look like they are about to cross-over into an uptrend. 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