First up is that there ascending channel on GBP/CAD’s 1-hour chart. As y’all can see, the pair is currently gunning for the channel’s resistance area, but stochastic is already indicating overbought conditions. There’s therefore a better-than-average chance that the pair may be getting enough sellers to push it lower sooner or later. More conservative forex traders should note, however, that going short near an ascending channel’s resistance area is kinda going against the trend, so you may wanna wait this one out for a while until the pair falls back down towards the channel’s support area.
Next, AUD/USD has actually been trending lower since early November. However, the pair has recently been steadily climbing higher while inside an ascending channel. In addition, it looks like the downtrend is about to end, given that the moving averages have already crossed-over into uptrend mode. And for those of ya who are bullish on the pair, just note that price is currently testing the channel’s support area, so y’all better start looking for opportunities to go long. All the more so, since stochastic has already reached oversold territory. Again the longer-term trend is still down, though, so just make sure to practice proper risk management, okay?
Finally, let’s revisit last Thursday’s ascending channel setup for GBP/CHF. And as y’all can observe on that there chart, the pair dropped about a hundred pips before climbing back up for about 130 pips since we last saw it. So give yourself a pat on the back if you’ve been playing this rather profitable chart pattern. Anyhow, for today’s play, the pair is about to reach the channel’s resistance area and stochastic is already indicating overbought conditions. An opportunity to go short may therefore reveal it soon.
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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.