A 4-hour chart is not exactly ideal for an intraday setup, but I just can’t pass up this opportunity to show you guys this symmetrical triangle that I spotted on AUD/JPY. As a symmetrical triangle area pattern, we don’t really have a directional bias since an upside breakout is just as likely to occur as a downside breakout. Our technical indicators seem to favor an upside move, though, since the moving averages are still in uptrend mode while stochastic is moving up from oversold conditions, indicating that buyers may potentially be in control already.
That chart sure is a thing of beauty, isn’t it? EUR/NZD has been moving in a pretty neat ascending channel and has been respecting the moving averages to boot. The basic way to play an ascending channel is to look for support near the bottom of the channel. And as luck would have it, price is currently testing the bottom of the channel. But will support form here?
I think that there’s a better-than-average chance that support will form here because while price did penetrate the 100 SMA, the 200 SMA has yet to be tested and the 200 SMA sits right smack on the major psychological level at 1.6300, so we may see buyers start nibbling in when price reached that price area. Stochastic is also in oversold territory, hinting that forex traders bearish on the pair may be exhausted already.
I’ve got another triangle setup on this chart, which means that this intraday forex chart art entry is now officially an area-pattern themed one, so area pattern time!
This time, I found an ascending triangle on the 1-hour forex chart for GBP/AUD. As an ascending triangle our directional bias is to the upside. And the 100 SMA and 200 SMA are in uptrend mode too, with the 100 SMA acting as dynamic support. It’s still a triangle, though, so prudent forex traders should be ready for a downside breakout as well.
Oh, as usual, make sure to practice proper risk management if you find a trade based on any of these charts.
Forex Chart Settings:
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.