Okay, let’s first take a gander at that there ascending channel on NZD/CHF’s 1-hour forex chart. And as y’all can see, the pair is presently testing the channel’s resistance area, so y’all better start looking for opportunities to go short, especially since stochastic has been milling about in the overbought area. The moving averages are in uptrend mode, though. And an ascending channel is a bullish chart pattern. Going short on the pair is therefore a counter-trend setup, so more conservative traders may wanna sit this one out or go in with only half (or less) of your usual position size.
Next, we’ve got that there messy-looking descending channel for EUR/NZD. The setup here is the mirror image for the setup on NZD/CHF since the pair is testing the descending channel’s resistance area. The same warnings apply to more conservative forex traders, though, namely that going long on the pair is a counter-trend play. And make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
Finally, take a look at that there 1-hour chart for NZD/JPY. As y’all can see, the pair has recently staged an upside breakout from a descending channel. And the pair did this by steadily trending higher inside a smaller ascending channel. The lack of bullish momentum implies that there is a chance that the pair could reenter the larger descending channel. All the more so since stochastic is already signalling overbought conditions. Price has been closing above the moving averages, though, which implies bullish interest. And it also looks like the moving averages are coming closer together for a potential cross-over into uptrend mode. Anyhow, just make sure to prepare for both an upside continuation and a downside channel reentry.
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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.