A descending channel is beginning to form on GBP/NZD’s 1-hour time frame, as y’all can see on that there chart. Price has to respect the potential channel’s resistance area and move back up before the forex chart pattern can be validated, but there’s a better-than-average chance that price will be going back up soon since the channel’s support area happens to sit right smack on the price area with significant market interest at the 2.0650 minor psychological level. Also, stochastic is now indicating oversold conditions, so forex traders who are bearish on the pair may be enticed to jump in sooner or later.
After spurting higher, AUD/USD began encountering sellers, but bullish interest was clearly stronger, so now an ascending channel has formed on its 1-hour chart. Price is currently near the channel’s resistance area, so more conservative forex traders may wanna wait for the pair to come back down. But for the more aggressive forex traders who feel gangsta enough to go short on the pair, just know that stochastic is already indicating overbought conditions. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
The recent price action on USD/JPY’s 1-hour chart is pretty similar (and actually seems to be the opposite) to that of AUD/USD’s in that price moved with great bearish momentum before encountering buyers and then slowly grinding lower while trapped inside a descending channel. Anyhow, price is currently moving away from the channel’s resistance, but it’s already meeting a lot of buyers at the mid-channel area. In addition, stochastic is about to reach oversold territory, so the pair may be going back up soon.
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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.