Well, well, well. What have we here? Well, we have an ascending channel on EUR/CAD’s 1-hour forex chart. It looks like price is currently testing the bottom of the forex chart pattern, so a trading opportunity may be born soon since there’s a good chance that support will form at the 1.4450 minor psychological level given that it has seen some market interest in the recent past. In addition, the moving averages are currently in uptrend mode, with the 200 SMA acting as dynamic support. Stochastic is also indicating oversold conditions, so buyers may start to nibble soon.
Looks like NZD/JPY has been consolidating into a symmetrical(ish) triangle on the 1-hour forex time frame. As a symmetrical(ish) triangle chart pattern, we don’t really have a directional bias since an upside breakout is just as likely to occur as a downside breakout. Stochastic seems to favor an upside move, though, since its currently in oversold territory, which implies that forex traders bearish on the pair may be losing steam already. As for technical arguments that support a downside breakout, there’s the fact that the long-term trend is still down. In addition, bulls already tried an upside breakout but failed, so seller interest seems rather strong.
Yep, I’ve got yet another ascending channel for y’all. This one ain’t ripe yet, though, since price is still a bit far from the bottom of the channel. Stochastic is already in the oversold region, though, so the sellers may already be out of steam. Still, the most conservative way to play an ascending channel is to look for support near the bottom, so it would probably be best to wait for price to reach the bottom first. In any case, make sure to practice proper risk management should you find a trade based on any of these charts.
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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.AUD/CAD 1-hour Forex Chart