Are ya bearish on the Kiwi? If ya are, then take a gander at that there ascending channel for NZD/CAD. As y’all can see, the pair’s upward march was interrupted when it reached the channel’s resistance. Meanwhile stochastic is pointing down again, so bears may be wrestling control from the bulls, and so there’s a chance that the pair may move lower. Going short here is a counter-trend setup, though, so more conservative forex traders may wanna sit this one out for now and wait for an opportunity to go long when or if the pair tests the channel’s support area.
GBP/NZD finally staged a successful downside breakout from the ascending channel that we identified back on Monday. The downside move was pretty strong, but suddenly lost momentum when it encountered buyers at the 1.7850 minor psychological level. If support forms there, and price begins to pull back, then we may be getting a Fibonacci setup to play with. All Fibonacci retracement levels look like potential pullback areas. However, stochastic is already signaling overbought conditions, so keep an eye on the 38.2% retracement level.
If you’re more bullish on the Kiwi, then you may like that there ascending channel for NZD/CHF’s 1-hour chart. As y’all can see, the pair has been very steadily trending ever higher while respecting an ascending channel. The pair is presently testing the channel’s support area and stochastic has even reached oversold conditions to boot. Moreover, the moving averages are in uptrend mode, and it even appears as if the 100 SMA is acting as dynamic support. There is therefore a higher-than-average chance that support may form and that the pair would be pushed higher. As usual, just make so make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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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.