First on the lineup for today’s awesome Kiwi + safe-havens + chart pattern triple combo is that there rectangle pattern for NZD/CHF. As y’all can see, the pair has been recently trading sideways while respecting resistance at 0.7080 and support at 0.7000, giving us a nice 80-pip trading range to play with. The pair is currently milling about near the rectangle’s resistance area. So if you’re planning to trade within the range, then y’all better start looking for opportunities to go short. And all the more so, given that stochastic already pushed away from overbought territory.
If you’re more bullish on the Kiwi, then you may like that there chart. As y’all can observe, NZD/JPY has been trending lower inside a descending channel. However, the pair has recently been trading ever higher. In the process, a new ascending channel has formed within the descending channel. If you’re more bullish on the Kiwi, then you may want to keep an eye on the new ascending channel, since the pair may use that to climb higher. But if you’re more bearish, then you may wanna keep a closer eye on the older descending channel. But looking at our technical indicators, they seem to favor an upside move for now. For one, stochastic is already about to reach the oversold area. Another is that the moving averages are about to cross-over into uptrend mode.
If you’re not particularly bearish or bullish on the Kiwi, and if you’re more of a breakout artist than a trend rider, then you may wanna put NZD/USD on your watchlist. You see, a somewhat symmetrical triangle has now formed on the pair’s 1-hour chart. A symmetrical triangle could potentially break out in either direction. And if a breakout does occur, then the resulting rally or selloff could potentially last for around 100 pips, based on the height of the pattern.
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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.