Trend traders out there may wanna put EUR/NZD on their watchlist because the pair seems to be making its way down after bouncing off from that there ascending channel’s resistance area. Do note, however, that there’s a chance that the pair may resume moving higher without ever testing the channel’s support area. For one, stochastic is already moving up and away from oversold territory. Another is that the pair already seems to be getting buyers near the mid-channel area, and the 200 SMA may even act as dynamic support to boot.
If trading within a range is more your thing, then you might like that there rectangle on EUR/AUD’s 1-hour chart. As y’all can see, the pair is trading sideways while respecting resistance at 1.4760 and support at 1.4560. That’s not a new setup, by the way, because we already played this last Friday. Also, the pair moved 170 pips lower since last we saw it, so give yourself a pat on a back if you were able to ride it down. Going back to today’s play, the pair is currently testing the rectangle’s support area. And it looks like buyers are already trying to send the pair higher, probably because stochastic is already signaling oversold conditions. There’s always a chance for a downside breakout, though, so just make sure to practice proper risk management.
If breakout plays and reversal setups are more you style, then how about that there head-and-shoulders pattern for EUR/CAD? The pair just recently broke past the pattern’s neckline at 1.4630, but immediately retraced and is now testing the broken neckline. If the pair decides to validate the chart pattern by pushing lower, then the down-move may potentially last for around 240 pips. But if the bulls manage to overwhelm the bears, then price will likely range between the neckline at 1.4630 and the resistance area at 1.4870. Our technical indicators seem to favor further downside moves, though, since stochastic has just reached overbought territory while the moving averages just recently crossed-over into downtrend mode.
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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.