Let’s begin by revisiting yesterday’s ascending channel setup on NZD/CAD’s 1-hour chart. And as y’all can see, the pair moved around 80 pips lower since we last saw it yesterday. And since the channel is still intact, why not play it again? If life gives you lemons, go make some lemonade, right? Anyhow, for today’s play we are looking for opportunities to go long, since the pair is just about to test the channel’s support area. Do note, however, that there’s a chance that the pair may move higher without testing the channel’s support area, given that stochastic is already moving away from oversold territory while the 100 SMA seems to be acting as dynamic support.
Next, we’ve got a descending channel for EUR/CAD. The pair is currently testing the chart pattern’s resistance area, so y’all better start looking for opportunities to go short, especially since stochastic is already indicating overbought conditions. The most recent upswing seems to have a lot of momentum, though, so you may also want to consider a possible upside channel breakout.
Finally, CAD/CHF has been trending higher. And if we connect all the troughs and the peaks, we get a newly-minted ascending channel. Anyhow, the pair is presently milling about the channel’s support area, so keep an eye out for opportunities to go long on the pair. And it’s also encouraging to see that stochastic is currently indicating oversold conditions, since that could mean that buyers may be enticed to jump in soon. But as usual, however, just 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.