EUR/GBP is slowly moving towards the bottom of an ascending channel that’s clearly visible on the pair’s 1-hour forex chart. As y’all know, the most conservative way to play an ascending channel is to look for support near the bottom of the channel, but it looks like price is already hesistating since it’s grinding a bit higher. Stochastic is also pointing up again, hinting that forex traders who are bullish on the pair may be taking over already. The moving averages, meanwhile, are about to cross-over into downtrend mode, so there’s still a chance that price will keep going down.
Well, the forex chart pattern above is not exactly a symmetrical triangle. It’s not even symmetrical-ish, so let’s just call it a triangular consolidation area. The main thing we have to keep in mind here is that a price contraction or consolidation is usually followed by a price expansion or breakout. Where will price breakout, you ask? Well, it’s hard to say, so make preparations for a breakout in either direction. Stochastic is already in oversold territory, which signals that forex traders bearish on the pair may be exhausted already. As for the moving averages, well, they’re not really helping since they’re oscillating.
Fancy something simple yet different? Then check out this potential bounce-from-resistance setup for CHF/JPY. The 127.90 handle has seen significant market interest in the past, and price already tested this price level once and was promptly repelled. Now, price is testing it again. Stochastic is indicating potentially overbought conditions, which gives us a boost in confidence that resistance will hold. Unfortunately, the moving averages already crossed-over into uptrend mode, so make sure to practice proper risk management should you find a trade based on this or any of the other 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