After trading sideways for a while, AUD/NZD began making higher highs and higher lows. And if we connect the peaks and the troughs, then we get that there ascending channel to play with. Price is currently at the mid-channel area, so conservative forex traders should wait awhile until price reaches the bottom of the channel. But looking at our technical indicators, we can see that stochastic is already pointing up and moving away from oversold territory, so forex traders who are bullish on the pair may be taking over already and the pair may continue going up without reaching the channel’s bottom. But if the pair keeps going further, just know that the moving averages have recently crossed-over into uptrend mode. And it even looks like the 100 SMA could potentially serve as dynamic support.
The 4-hour time frame is not exactly ideal as an intraday forex chart, but I just can’t pass on this one. As y’all can see GBP/AUD has been steadily moving ever lower while bouncing around in a descending channel on its 4-hour forex chart for several months now. And I know I keep saying it, but one of the most conservative ways to play a descending channel is to look for resistance and selling opportunities near the top of the channel. And it just so happens that price has been testing the top of the channel around the 2.0900 major psychological level but kept getting rejected, so y’all better get ready. Also, stochastic is just about to reach the overbought area, but it’s still pointing up, so forex traders who are bullish on the pair may not have given up yet. As for the moving averages, they’re still in downtrend mode but price has been closing above both the 100 and 200 SMAs, which implies strong buying interest.
Sound the reversal alert! A potential double bottom pattern has now formed on AUD/CHF’s 1-hour forex chart. As y’all can see, price tried to move past support around the 0.6860 handle once, but got repelled violently. Now, price is attempting to break past that support area again. Should the support area hold, and the pair moves higher past the neckline at the 0.7080 handle, then we got us a confirmed double bottom. Stochastic is already indicating oversold conditions, but do note that the moving averages are still indicating a healthy downtrend, and the 100 SMA may even act as dynamic resistance. Anyhow, the distance between the forex chart pattern’s bottoms and its neckline is 220 pips, so a break past the neckline may potentially last for the same amount. 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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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