As I always say, a conservative way to play an ascending channel is to look for support and buying opportunities near the bottom of the channel. And lucky us since that’s where price is currently at, so y’all better get your gameface on. Yee-haw! Anyhow, a quick glance at our technical indicators show that the moving averages are currently indicating a healthy uptrend while stochastic is already indicating oversold conditions, so other forex traders who are bullish on the pair may be lookin’ at this chart, too. In addition, the recent swing down quickly lost momentum when it reached the 50% Fibonacci retracement level, which is another technical argument for strong buyer interest.
NZD/CAD has been trading sideways since January 7 while respecting the resistance area at the 0.9400 major psychological level and support around the 0.9250 minor psychological level. This gives us a nifty 150-pip trading range or rectangle to play with. Be careful, however, since a double bottom seems to be forming as well. Moreover, stochastic has already reached oversold territory while the moving averages have just crossed-over into uptrend mode.
No fancy forex chart patterns for this one. This here is just a plain vanilla Fibonacci retracement setup. As y’all can see, price has pulled back after getting rejected when it reached the 79.80 handle. And the pair seems to have found resistance at the 38.2% retracement level around the 80.80 handle. Our technical indicators are very promising, too, since the moving averages are indicating a healthy downtrend while stochastic is already pointing down after reaching the overbought region. Just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
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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