Well, looks like my hunch that the lack of momentum on the bullish flag breakout that we found on AUD/JPY’s 1-hour forex chart yesterday could mean that the forex chart pattern will fail was right after all. I’m still bullish on the pair, though, since price finally broke past resistance at the 87.20 handle. For today’s play, we’re lookin’ at a break-and-retest setup since price has finally made its way back to the 87.20 handle. Using our handy dandy Fibonacci tool, we can see that the 87.20 handle sits right smack on the 50% retracement level and the 100 SMA is acting as dynamic support to boot. Stochastic is also currently at the oversold region, so forex traders who are bearish on the pair may be losing steam soon.
Are ya in the mood for a counter-trend trade? If ya are, then take a look at that there chart for USD/CHF. As y’all can see, price is currently at the bottom of a descending channel, and y’all probably know by now that the most conservative way to play a descending channel is to look for resistance near the top, and what we’re plannin’ to do is the exact opposite of that. Anyhow, stochastic is already starting to point up and could be moving away from oversold territory soon, so U.S. dollar bulls may be could potentially be taking control already.
Looks like the potential double bottom that we identified last Wednesday was finally validated. The breakout immediately met a lot of sellers, though, so if you missed the initial breakout, then now may be a good time to look for a trading opportunity since, as y’all can clearly see on the chart, price is currently testing the broken neckline at the 0.7270 handle, which also happens to line up quite nicely with the 50% Fibonacci retracement level. Moreover, the moving averages have just recently crossed-over into uptrend mode. Stochastic is still pointing down and moving towards the oversold region, though, so the bears may not be giving up just yet. In any case, 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