Reversal alert! A very obvious head-and-shoulders pattern has formed on EUR/AUD’s 1-hour time frame. The height from the forex chart pattern’s “head” to its “neckline” is around 330 pips, so a downside move after breaking past the neckline at 1.5470 may have enough momentum to move for the same amount. Be careful, however, since the moving averages are still in uptrend mode, and the 100 SMA is even acting as dynamic support. Furthermore, stochastic has already reached oversold territory, so some forex traders who are bullish on the pair may be enticed to keep the pair supported.
After a major down move, the bulls and the bears began fighting it out on AUD/USD’s 1-hour forex chart, but neither side is ultimately winning since a symmetrical-ish triangle has formed. A symmetrical-ish triangle can break out in either direction, and the resulting move could potentially last for around 150 pips since that is roughly the height of the triangle. However, recent price action seems to favor further moves to the downside. Also, stochastic is presently indicating overbought conditions while the moving averages are indicating a healthy downtrend, with the 100 SMA acting as dynamic resistance.
Looks like we got us another reversal pattern in the works. AUD/CHF’s recent price action seems to be a mirror image of EUR/AUD’s price action. As such, an obvious inverse head-and-shoulders pattern has formed on the pair’s 1-hour chart. The pair has already broke past the neckline, but bullish momentum seems insufficient for now. But if momentum does pick up, then we can probably expect the pair to move higher for around 180 pips, based on the height of the forex chart pattern. The moving averages are still in downtrend mode and the 100 SMA is even acting as dynamic resistance. Stochastic is also in overbought territory, so do be careful. In any case, just 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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