Price is currency making its way to the top of that there descending channel on AUD/CAD’s 1-hour chart, so y’all better start looking for selling opportunities. After all, one of the most conservative ways to play a descending channel is to look for selling opportunities when price is at or near the top of the channel. Stochastic is already pointing down and moving away from the overbought region, however, so there’s a small chance that price may not be testing the top of the channel at all.
Reversal alert! A potential double bottom on CAD/CHF’s 1-hour forex chart is forming. As y’all can see, price is gunning for the potential forex chart pattern’s neckline around the 0.7380 handle. In addition, the moving averages have already crossed-over into uptrend mode, and the 100 SMA even acted as a launching pad for the current up move. Stochastic has already reached overbought territory, but it’s still pointing up, so forex traders who are bullish on the pair may not have given up yet. Perhaps enough buyers will come in to break past the neckline, validating the forex chart pattern. If the double bottom is validated, price could potentially move up for about 480 pips, which is roughly the height of the pattern.
Don’t stop sounding the reversal alert because we’ve got another one. This time, we’re looking at a rather messy double top pattern on EUR/CAD’s 1-hour chart. Unlike the other reversal pattern above, this double top pattern has already been confirmed since the neckline at the 1.5150 minor psychological level has already been breached. Anyhow, the down move will likely have enough bearish momentum to last for a whopping 700 pips, based on the distance between the neckline and the tops. This setup is only for aggressive forex traders, though. Conservative forex traders may wanna wait for a pullback. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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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