Looking for a breakout play? If you are, then feast your eyes on that there symmetrical-ish triangle on AUD/NZD’s 4-hour forex chart. A symmetrical-ish triangle means that the bulls and the bears are playing a game of tug-of-war, but neither side is really winning out. This also means that price is just as likely to break out in either direction. And if a breakout does occur, the resulting selloff or rally would likely have enough momentum to last for around 500-600 pips, based on the height of the forex chart pattern.
Don’t fancy a breakout? Then how about this trend play? As y’all can see, price has been trading slightly downwards while bouncing up and down inside a descending channel pattern. And as y’all should know by now (because I keep saying it), one of the most conservative ways to play a descending channel is to look for selling opportunities near the top of the channel. And as luck would have it, price has just bounced off the top of the channel and is making its way down already. The moving averages are oscillating, so they ain’t really helping much, but stochastic is pointing down and moving away from oversold territory, so forex traders who are bearish on the pair may be firmly in control already.
How about another channel setup? This time, I’ve got an ascending channel for EUR/USD’s 4-hour forex chart. Looking at the chart, we can see that price is currently gunning for the channel’s support area, which happens to line up with the price area of significant market interest at the 1.0950 minor psychological level, so y’all better get ready. Looking at our technical indicators, the moving averages have just recently crossed-over into uptrend mode, which is a real confidence booster. Do note that there’s a chance that price will not test the channel’s support area, though,k since stochastic is already indicating oversold conditions and the 200 SMA looks like it may act as dynamic support. 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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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