Sup, dawg! I’m starting the new trading week with fresh chart patterns on the Aussie. To be more specific, I’ve got a channel on GBP/AUD and a rectangle on AUD/CAD. Check ’em out!
GBP/AUD’s price action has been tilting to the upside lately. In fact the pair appears to be respecting that there ascending channel. And y’all better start lookin’ for opportunities to go long since the pair is currently testing the channel’s support area.
Bearish interest at 1.7230 seems rather strong, however, so y’all may wanna wait for a break past that before going long. But if you’re so gangsta that you can’t wait, then you may wanna observe how the pair reacts to 1.7230 before chillaxing.
As always, there’s a slim chance that the pair may break to the downside, so be careful if the pair breaks lower past 1.7000. And if the pair smashes past 1.6800 after that, then y’all may wanna bail yo longs or even switch to a more bearish bias.
If y’all can still recall, we identified a bearish flag pattern on AUD/CAD’s 1-hour chart way back on November 8. And back then, the pair was hovering above 0.9760 and we so were looking for opportunities to go short.
Well, the pair did move lower since then, so congratulations for bagging some pips. Aww, yeah!
However, if we take the most recent price action into account, we can see that a rather big rectangle pattern or trading range has formed, with resistance at 0.9910 and support at 0.9700.
The pair is currently at the rectangle’s support area. So if any y’all are planning to trade within the range, then y’all better start lookin’ for a chance to go long while gunning for 0.9910. Another option is to wait for the pair to move higher past 0.9760 before going long.
Do note, however, that stochastic is already pointing back down after hitting overbought territory. There’s therefore a higher-than-average chance that the pair may stage a downside break.
If that happens, then that means our original bearish flag setup is still in play and the pair will therefore likely be gunning for 0.9600 as its initial destination.
In any case, just make sure to practice proper risk management, a’ight?