AUD/JPY has been trading sideways while trapped inside a 200-pip trading range or rectangle, with resistance and support respectively at the 82.00 and 80.00 major psychological levels. Price is currently gunning for rectangle’s support area, but seems to be getting some buyers already. Also, stochastic is already pointing up and moving away from oversold territory. Conservative traders may wanna wait until price has tested the rectangle’s support area before looking for opportunities to go long, however. Also, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
As y’all can see on that there chart, AUD/CAD has been grinding lower while bouncing inside a descending channel since late December. The pair is presently testing the channel’s support area and the pair may either (1) respect the channel and climb higher or (2) stage a downside channel breakout. Obviously, both scenarios are somewhat risky, so more conservative forex traders may wanna sit this one out. A downside breakout seems to be the more likely scenario for now, though, since stochastic is pointing down while the moving averages have just crossed over into downtrend mode.
Looks like the double top breakout play for last Friday’s Intraday Forex Charts Update turned out to be a dud, and the likely reason can be found if we zoom out to the 4-hour time frame or higher. Based on the 4-hour chart, a massive symmetrical-ish triangle is beginning to take shape. A symmetrical-ish triangle means that bulls and bears are equally matched, so we don’t really have a directional bias. Stochastic is already indicating overbought conditions, though, so forex traders who are bearish on the pair may start nibbling soon. Anyhow, the forex chart pattern has a height of around 500 pips, so a breakout in either direction may have enough momentum to move for the same amount.
Forex Chart Settings:
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