Does that chart seem familiar? If it does, then that’s probably because you were able to catch last Friday’s intraday charts update. You see, that there is the updated chart for the ascending channel on NZD/CAD’s 1-hour chart. The channel is still intact, which is great. Unfortunately, the pair moved back up without testing the channel’s support area. But luckily, the pair has already reached the mid-channel area while stochastic is already indicating overbought conditions. There is therefore a chance that the pair may move back down again, so you may want to put this on your watchlist. Do note, however, that if such a scenario occurs, then there’s also a chance for a downside breakout, so prepare for that as well, or at least wait until support appears to have formed before going long.
NZD/CHF’s uptrend appears to have ended, and the moving averages have even crossed-over into downtrend mode. But if you’re still bullish on the pair, then just know that price appears to have found fresh buyers around the 0.7090 handle, which is a price area with significant market interest, even on the higher time frames. There’s therefore a chance that support will form here, especially since the 0.7090 handle lines up rather well with the 50% Fibonacci retracement.
After gracefully trending lower, AUD/NZD appears to have found support at the 1.0260 handle. However, sellers are relentless, so much so that a descending triangle pattern has formed. A descending triangle is a bearish continuation pattern, so our main directional bias is to the downside. Although there’s always a chance that the pair could break to the upside instead. Anyhow, the chart pattern is about 100 pips tall, so a downside breakout move could last for the same amount or more. And as usual, 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.