GBP/NZD’s bullish momentum quickly ran out of steam when it reached the 2.1750 minor psychological level. The pair then began slowly pulling back, and if we apply our handy Fibonacci tool, we can see that the likely pullback area would be at the 50% retracement level since it happens to sit right smack on the previous resistance area at 2.1450 (dashed line). Also, if price does pull back to that level, then the 100 SMA may potentially act as dynamic support, which is another technical argument for an upside bias. There’s a chance that the pair could move higher without touching 2.1450, though, since stochastic is already signalling oversold conditions, which may attract some bulls to start jumping in.
Is NZD/CHF in for further moves to the downside? Well, there seems to a better-than-average chance that it will since a rising wedge has apparently formed on its 1-hour chart. Also, price is currently milling about at the 0.6710 handle, which may hold as resistance since it is a price area with very significant market interest, even on the higher time frames. Anyhow, if a downside breakout does occur, then the pair may potentially move lower for 110 pips, based on the height of the forex chart pattern.
EUR/NZD has been steadily moving ever lower while trapped in a rather tight descending channel. And as y’all can see on that there chart, support at the 1.6570 handle seems to be holding well, so there’s a chance that the channel will be invalidated, and even a possibility of an upside channel breakout. But looking at our technical indicators, the moving averages are now in downtrend mode, with the 100 SMA seemingly acting as dynamic resistance. As for stochastic, it hasn’t quite reached the overbought area yet, but it’s already pointing back down, so bears may be in control already.
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.