Looks like the ascending channel that we found on AUD/CHF’s 1-hour forex time frame back on Monday is still alive and well. It even climbed higher for around 90 pips since we last saw it. Better yet, the pair is already approaching the top of the channel so we may be getting a trading opportunity soon, although I have to warn y’all that such a trading opportunity may be too risky for some since it’d be counter-trend setup. After all, the most conservative way to play an ascending channel is to look for support near the bottom of the channel. In any case, stochastic has already reached overbought territory, so some forex traders who are bearish on the pair may be tempted to start nibbling already.
EUR/AUD has been bouncing around in this here trading range or rectangle since the middle of August. The rectangle’s resistance is at the 1.6150 minor psychological level while support is at the 1.5600 major psychological level, which gives us a pretty sweet 550 range, so trading within the range could be a profitable strategy. And as of today, price has been testing the bottom of the rectangle, and it seems to be holding. Stochastic is also at the oversold region as well. The only thing that worries me is that the moving averages have already crossed-over into downtrend mode, so there’s also a small chance for a downside breakout.
Woah! Sound the reversal alert! As y’all can see, a potential double bottom has formed on AUD/USD’s 4-hour forex chart, with the neckline at the 0.7270 handle. The moving averages are also coming closer together for a potential cross-over into uptrend mode, which would be great since it would support our directional bias to the upside. Stochastic is dampening the mood a bit, however, since it’s already signalling potentially overbought conditions. Anyhow, if this forex chart pattern is validated, then we can probably expect the resulting rally to have enough momentum for a 320-pip move since that is roughly the height of this pattern. As usual, make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
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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