First up in today’s channel pattern special is that there ascending channel on AUD/CAD’s 1-hour chart. Price is currently milling about near the channel’s resistance area, which is just below the 0.9600 major psychological level, so the pair may start moving back down soon. Do note, however, that stochastic just recently and very briefly touched the oversold area before rebounding, which implies strong bullish interest, so an upside channel breakout is a possibility.
Next, we’ve got a descending channel for AUD/USD, and chances are good that the pair may move back up again since price is currently testing the channel’s support area while stochastic is already signalling oversold conditions. The bearish momentum is strong, though, and the moving averages have just recently crossed over into downtrend mode. Moreover, the down trend was confirmed on the 1-hour chart after the pair broke that well-respected rising trend line (dashed line). All those technical arguments taken together means that a lot of bears may have their sights on the pair, so it would be prudent to wait for support to actually form before going long, since the downtrend may accelerate, which could result in a downside channel breakout.
Finally, we’ve got a steady ascending channel for NZD/CAD. And price is currently testing the channel’s resistance area, so better start looking for opportunities to go short, especially since stochastic is already indicating overbought conditions. 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.