Intraday Forex Charts Update – Mar. 7, 2016

AUD/CHF: 1-Hour

AUD/CHF: 1-hour Forex Chart

AUD/CHF: 1-hour Forex Chart

AUD/CHF has been trending higher while trapped inside a rather tight ascending channel for some time now. Price seems to be hesitating at the mid-channel area, though, and stochastic is indicating overbought conditions to boot, so be wary of a potential downside channel breakout. The fact that stochastic keeps visiting the overbought region without reaching the oversold area implies that buyer interest is very strong, though.

GBP/AUD: 1-Hour

GBP/AUD: 1-hour Forex Chart

GBP/AUD: 1-hour Forex Chart

As y’all can see, the pair has been grinding lower while bouncing up and down inside a descending channel. Price is currently milling about near the channel’s resistance area, so opportunities to go short may already be presenting to themselves to some of you, but the way price sticks to the forex chart pattern’s resistance area makes me think that buyers are trying their best to push higher. Looking at our technical indicators, it also looks like the 100 and 200 SMAs closed together and narrowly missed crossing over into uptrend mode. Stochastic is also indicating oversold conditions. In any case, just make sure to prepare for a potential upside channel breakout as well.

AUD/USD: 1-Hour

AUD/USD: 1-hour Forex Chart

AUD/USD: 1-hour Forex Chart

As I always say, one of the most conservative ways to play an ascending channel is to look for buying opportunities when price is near the bottom of the channel. Incidentally, that’s where price is currently at, so y’all better start looking. However, do be careful since stochastic is just about to reach overbought territory. But the speed at which stochastic launched from the oversold area and the fact that stochastic has previously spent time in the overbought area while price continued trading higher indicates that buying interest is very strong, so the pair may still have enough momentum to go higher. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?

Forex Chart Settings:

Slow Stochastic: 14, 3, 3
100 SMA: Blue line
200 SMA: Red line

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