Back on Tuesday, price was close to the resistance area at the 0.9600 major psychological level. And back then, we wuz expecting resistance to hold. In addition, we wuz expecting them bears to shoot for the next area of interest at 0.9490. Well, guess where price be at now, dawg. That’s right! It pulled back all the way down to 0.9490.
Anyhow, if y’all can still recall Tuesday’s setup, I also told y’all that we were still bullish on the pair. It just so happens that we wuz expecting a pullback. And since the pullback appears complete, it’s time to switch back to a bullish bias. And all the more so, given that buyers seem entrenched at 0.9490. Moreover, stochastic is already indicating oversold conditions and all that. And if we apply our Fibonacci tool, we can see that the 0.9490 handle is just above the 38.2% retracement level, which is another technical argument for support to form here.
Oh, just note that there’s still a chance that the pair may continue to move lower to 0.9400. But if the pair continues moving past that, then you may wanna consider bailing out or switching bias, since that could be an early sign of a trend shift.
That there ascending channel on NZD/CHF’s 1-hour forex chart is real fresh, homie. And as y’all can see, the pair is presently at the channel’s support area. And the channel’s support area happens to line up rather nicely with the price area of interest at the 0.7230 handle. Y’all therefore better start lookin’ for opportunities to go long. Know what I’m sayin? And our technical indicators be lookin’ fine as well, since stochastic is already signaling oversold conditions and all that. Them moving averages, meanwhile, are indicating a healthy uptrend, with the 100 and 200 SMAs both acting as dynamic support to boot.
There’s a small chance of a downside channel breakout, but that’s rather unlikely for now. But just in case one does occur, then make sure to keep your eyes on how the pair reacts to 0.7170 and 0.7130, since the breakout would still likely be premature until the pair smashes past those. Anyhow, just remember to always practice proper risk management, 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.