The ascending channel setup on GBP/CHF’s 1-hour chart that we identified two days ago is still intact. In fact, the pair dropped 70 pips before climbing almost 200 pips since last we saw it. So congratulations if you have been playing this very profitable chart pattern since Tuesday. But for those who missed Tuesday’s setup, just know that the pair is presently milling about at the channel’s resistance area, so y’all better start looking for opportunities to go short. Do keep in mind, however, that going short here is a counter-trend setup, so such a play is riskier than usual. And all the more so since there are signs that bullish interest is getting stronger, given that stochastic moved back up again without ever reaching oversold territory.
Next, last Tuesday’s descending channel pattern for EUR/CHF is also still intact. Unfortunately, the pair was not as profitable as we hoped. After all, the pair only moved about 70 pips lower to around 1.0690 before proceeding to trade sideways. The pair is currently testing the channel’s resistance area, though, so an opportunity to short may soon present itself. Just keep an eye on 1.0690 since buyers seem to be lurking there. Y’all also better keep an eye on 1.0760, since bulls will be looking to smash past that if they’re planning to stage an upside channel breakout.
If you’re looking for something fresh, then check out that newly-formed channel pattern on NZD/CHF’s 1-hour time frame. Things are currently looking good for a potential upside move, since the pair is presently testing the channel’s support area. And looking at our technical indicators, we can see that the moving averages are in uptrend mode. It even looks like the 200 SMA is acting as dynamic support to boot. Stochastic, meanwhile, is steadily making its way higher after briefly visiting oversold territory. As usual, though, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
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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.