Up first is that there descending channel for NZD/CHF.
As y’all can see, bears have entrenched themselves at 0.7010 while beating back any attempts by the bulls to go higher. Not only that, each time them bears launch a counter-attack, the bulls retreat further and further away.
In the process, a descending channel has formed. And as I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
And lucky us, since that’s where the pair is currently at. Y’all therefore better start lookin’ for opportunities to go short.
Do be careful, however, since stochastic is pointing back up again after only briefly touching the oversold area, which implies that them bulls may be getting their second wind for an upside channel breakout attempt.
EUR/NZD surged higher before losing momentum upon hitting resistance at 1.5440. Them bulls didn’t give up, however, since they set up a base of support at 1.5250.And bulls having been using 1.5250 as a staging ground from where they have been launching unsuccessful attempts (so far) at breaching 1.5440.
Bulls do seem to have an advantage over them bears, however, since the pair has been grudgingly trading higher, forming that there slightly ascending channel.
Anyhow, the pair is presently close to the channel’s support area. Y’all therefore better start lookin’ for opportunities to go long.
Although it’s kinda worrying that stochastic is already signaling overbought conditions and all that, since that may entice enough bears to attempt a downside channel breakout.
It would therefore be prudent to prepare for such a scenario as well. In any case, just make sure to practice proper risk management, a’ight?