Back on December 22, we wuz lookin’ to go short once da pair reached da 0.9400 major psychological level. And, as y’all can see, da pair turned tail and went south once it reached 0.9400. Aww, yea! We leet now, dawg! Anyway, da pair went lower for about 160 pips, so give yo self a pat on the back if you found a trade.
For today’s play, there be a chance for a bounce higher, so we be lookin’ for opportunities to go long. Know what I’m sayin? No? Well, as y’all can see, da pair has reached da 0.9240 handle, which served as support previously. Also, stochastic will be indicating oversold conditions soon. There’s therefore a chance that da pair may move higher soon. Now you know what I’m sayin?
Anyhow, for those of ya who still have shorts, don’t bail out just yet, since our revised descending channel still shows that there be space for further moves to da downside and all that.
We originally had a descending triangle on NZD/JPY’s 1-hour chart, also back on December 22. Da pair did break to da downside, true dat. Howevah, that pattern wuz whack, so we didn’t get da 100 pips we wuz expecting ‘coz da pair only moved lower for about 50 pips before moving higher again. In da process of moving back up, da pair formed that there fresh ascending channel.
Anyhow, da pair is presently movin’ back down again to test da channel’s support area and all that. We are therefore lookin’ for a sweet opportunity to go long. Howevah, that’s not our only scenario, ‘coz we be so-fees-tee-kay-ted playas, dawg.
Our second scenario is that da pair will use 81.70 as a launching pad to dive lower. In that case, da bears will likely be gunning for a downside channel breakout. Although bears need to blast past 81.00 and then 80.20 to confirm da downside breakout.
Our third scenario is that bulls will really hustle and push da pair higher past 81.70. If da break is strong enough that an upside channel breakout occurs, then we be looking at a trend acceleration. Although bears will likely be waiting at 83.10, ready to hand out some whuppin. In any case, just make sure to practice proper risk managment, a’ight?
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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.