First up on today’s Aussie special is an ascending triangle for GBP/AUD. An ascending triangle is a bullish chart pattern, so our main directional bias is to the upside. However, there is a lot of market interest at the 1.7400 major psychological level (dashed horizontal line), even on the higher time frames. There is therefore a chance that 1.7400 will hold as resistance, forcing the pair to break to the downside instead. In any case, a breakout in either direction could potentially last for around 200 pips, based on the height of the pattern.
AUD/CHF has been steadily trending higher while more or less respecting an ascending channel, as y’all can see on the chart above. And if you’re bullish on the pair, then you better get ready since price is just about to test the channel’s support area. Looking at our technical indicators, they seem to be favorable to further moves to the upside since stochastic is already pointing up and moving away from oversold territory. Meanwhile, the moving averages have already crossed over into uptrend mode and the 100 SMA may even act as dynamic support if price does test the channel’s support area.
Finally, we’ve got yet another ascending triangle, but this time on AUD/NZD’s 1-hour chart. This ascending triangle is kinda weird in that it formed at the end of a downtrend, however. Also, one side of the triangle (dashed horizontal line) happens to be the neckline of a double top pattern. As such, there seems to be a higher chance of a downside move. All the more so since price just broke lower a while ago. The downside breakout doesn’t seem to have a lot of momentum, though. Moreover, stochastic has already reached oversold territory. There is therefore a chance that the pair could still move back into the triangle or even stage an upside breakout instead.
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.