EUR/NZD has been moving ever lower inside a descending channel since the start of October. And as of today, price is currently at the bottom of the channel, so perhaps conservative forex traders should sit this one out since the most conservative way to play a descending channel is to look for resistance near the top of the channel while looking for support near the bottom of the channel is one of the more riskier setups, especially since stochastic is still pointing down, which could mean that forex traders who are bearish on the pair may be done just yet.
Bulls and bears have been fighting it out on NZD/USD’s 1-hour forex chart. There are no clear victors just yet since a symmetrical-ish triangle has formed. And we don’t have a trading bias on this forex chart pattern since price could go either way. Although the overall trend is still up, even though the moving averages have already crossed-over into downtrend mode. Stochastic has also just moved away from overbought territory, although it started pointing up again, which could indicate that bulls are taking over again. In any case, the height of the triangle is around 250 pips, so the resulting rally or selloff could potentially last for the same amount.
Price has been respecting that there descending channel since late September. And unlike the one we found on EUR/NZD’s chart, price is currently at the top of this one, so y’all better start lookin’ for trading opportunities. Price action indicates that the overall trend is still down, although the moving averages are already very close together, and may even cross-over into downtrend mode. Still, stochastic looks promising since it’s pointing down and moving away from the overbought area, so forex traders who are bearish on the pair may be in control already. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
Forex Chart Settings:
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