GBP/NZD has been trending higher while trapped inside an ascending channel. The pair recently attempted an upside breakout but was quickly pulled back into the channel and the pair is on its way back down again. There’s a better-than-average chance that bulls may attempt another upside move, though, since stochastic is already indicating oversold conditions.
If the chart above looks familiar to you, that’s because it’s an updated chart of the trading range or rectangle pattern that we first identified back on Tuesday. Also, congratulations to those who managed to find a trade based on Tuesday’s intraday forex charts update. Anyhow, the rectangle pattern is still intact, with resistance at 74.60 and support slightly adjusted higher to 73.40, giving us a 130-pip trading range. The pair currently appears to be gunning for the rectangle’s resistance area, so those of you who are planning to trade the range by shorting at the resistance area may wanna get ready. Stochastic is already indicating overbought conditions, though, so there’s a chance that the pair may move back down again without testing resistance at 74.60.
Looks like NZD/USD has been steadily moving lower while bouncing up and down inside a descending channel. And since price is about to reach the forex chart pattern’s resistance area, conservative forex traders may wanna start looking for opportunities to go short. For the more aggressive forex traders out there, just know that the 200 SMA seems to be acting as dynamic resistance while stochastic has already reached overbought territory. These signals from our technical indicators imply that the pair may go back down again, perhaps without testing the channel’s resistance area, so do be careful and make sure to practice proper risk management.
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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.