As I always say, one of the more conservative ways to play an ascending channel is to look for buying opportunities near the channel’s support area. And as luck would have it, price has just recently bounced from the channel’s resistance area. However, do note that the pair seems to have trouble getting past the 0.6950 minor psychological level and has already been rejected twice, so do be careful. Also, stochastic is now signalling overbought conditions, so sellers may start jumping in to try and attempt a downside channel breakout, so make sure to prepare for such a scenario as well.
After finding support around the 73.20 handle, the pair moved with great bullish momentum, but ran out of steam and began trading sideways when it encountered strong selling interest around the the 75.50 minor psychological level (dashed line). In the process, what seems to be a bullish pennant has now formed. If the pattern is validated by an upside breakout, then the pair may move higher for around 230 pips, based on the pennant and its mast. 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?
NZD/CHF had a nice bullish ran for a few days. However, the pair couldn’t break past the 0.6690 handle, which is a price area with very significant market interest, even on the higher time frames. The pair’s first attempt to move higher failed, but buyers were waiting around the 0.6610 area, and they attempted to breach resistance again. However, the second attempt looks like a failure as well, but that’s okay since a potential double top has now formed. The double top is only about 90 pips high, so the pair may move lower for the same amount if support at the 0.6610 level is broken. It’s also worth mentioning that stochastic is now indicating overbought conditions, but it’s kinda worrying that the moving averages are now in uptrend mode.
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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.