USD/JPY has been slowly moving ever lower while trapped inside a slightly descending channel on its 1-hour chart since February. There are no conservative forex plays available, however, since the pair is currently testing the channel’s support area. But for those who feel gangsta enough for a counter-trend trade, however, just know that stochastic is currently pointing up and moving away from oversold territory, so bulls may be taking over already and the pair may be moving back up again.
After a strong down move, USD/CHF finally found support at the 0.9570 handle. Bears aren’t giving up, though, so the pair has been making lower highs, giving us a descending triangle in the process. A descending triangle is a bearish forex chart pattern, so our main directional bias is to the downside. Also, the moving averages are indicating a healthy downtrend, which is a real confidence booster that price will break to the downside. However, do note that there’s always a chance that price will break to the upside, so prepare for such a scenario as well.
NZD/USD bouncing up and down inside a rather messy-looking ascending channel since mid-January, as y’all can see on that there chart. Price is currently at the mid-channel area, so conservative forex traders may wanna sit this one out until the pair moves lower to test the channel’s support area. However, there’s a chance that the pair will move higher without testing support since the 200 SMA may act as dynamic support. Also, stochastic is already indicating oversold 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?
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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.