First on the lineup is that there ascending channel on NZD/CHF’s 1-hour chart. Price is currently hesitating at the mid-channel area, which happens to line up nicely with the resistance area at the 0.7000 major psychological area. And since stochastic is already signalling overbought conditions, forex traders who are gangsta enough may wanna consider going for a counter-trend setup by shorting. The moving averages in are uptrend mode, though. And the 200 SMA has even been acting as dynamic support, so more conservative forex traders may wanna sit this one out for now until price approaches the channel’s support area.
Next, we’ve got that there descending channel for GBP/JPY. The pair seems intent on going even lower, so much so that it has been hugging the channel’s support area. However, price has already reached the area of interest at the 133.90 handle, so there’s a good chance that the pair may get rejected. However, going long here is a counter-trend setup, so this setup is only recommended for the more adventurous forex trader. Anyhow, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
Finally, we’ll revisit the ascending channel on EUR/AUD’s 1-hour chart that we first identified last Tuesday (July 26). And as y’all can see, the channel is still somewhat intact, so let’s play it again. If life gives you lemons, build a lemon-powered battery, right? Anyhow, the pair is presently gunning for the channel’s support area. However, stochastic has already reached oversold territory. Moreover, the pair is beginning to approach the 1.4670 handle, which is a price area with strong market interest, even on the higher time frames. There’s therefore a chance that the pair will get rejected when or if it does test the channel’s support area, so euro bulls better get ready.
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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.