AUD/CAD has been grudgingly moving higher while inside an ascending channel. The pair is currently near the channel’s support area so y’all better start looking for opportunities to go long, especially since stochastic is still near the oversold area. However, the grinding pace at which the pair is trading ever higher may mean strong selling interest, so you may also want to consider the possibility of a downside channel breakout. 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, alright?
Next, bulls and bears are playing a game of tug-of-war on EUR/USD’s 1-hour chart. Neither side is really winning, though, which is why a symmetrical triangle pattern has began to form. A symmetrical triangle could break out in either direction. And if a breakout does occur, then the resulting rally or selloff could potentially last for a whopping 300 pips, based on the height of the chart pattern.
Looks like the ascending channel that we identified back on September 2 hasn’t been invalidated yet. In fact, the pair continued to trend higher inside the channel. And since price is currents close to the channel’s support area, why not play it again, right? Also, if we apply our handy Fibonacci tool, we can see that the channel’s support area lines up with the 50% retracement level, which is a confidence booster for our upside bias. The only worrying thing here is that stochastic is already signaling overbought conditions.
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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.