EUR/CAD has been respecting that there descending channel since the start of May. And presently, the pair is making its way down after testing the channel’s resistance area. Before you start looking for opportunities to go short, however, just know that price has just reached the 1.4500 major psychological level (dashed line). In addition, stochastic is about to reach oversold territory while the moving averages have just recently crossed-over into uptrend mode, which makes this setup a bit riskier than usual since the pair could use the 1.4500 level as a launching pad for an up move, so more conservative forex traders may wanna keep that in mind.
USD/CHF has been trading sideways while respecting resistance at 0.9670 and using the 0.9580 handle as support on two separate occasions, which gives us a nifty 90-pip trading range or rectangle pattern to play with. The pair is currently milling about halfway through the range, but there’s a chance that the pair may move back up again since stochastic is already signalling oversold conditions. This also means that forex traders who are bullish on the pair may attempt another upside breakout after the previous attempt failed.
NZD/CHF has been trending higher while inside an ascending channel, and it looks like everything is set for the uptrend to continue. Well, that’s how it looks on the surface at least. The moving averages, for instance, are indicating a healthy uptrend while stochastic is pointing up again after visiting the oversold region. Price is also close to the channel’s support area. Do note, however, that price action indicates that the pair seems to be having difficulty moving past the 0.6800 major psychological level (dashed), which is a price area with very significant market interest, even on the higher time frames. If resistance holds, there’s a chance that a head and shoulders reversal pattern could form and the pair may attempt a downside channel breakout instead.
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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.