Surf’s up, mate! The Australian dollar rode a strong bullish wave in recent trading sessions, creating a rising channel on its 1-hour forex chart. Price is stalling around the middle of the channel but looks poised to head towards the top, which is around the .9500 major psychological level. Stochastic is still climbing and indicating that Aussie bulls are in control of price action for now. If bears come back in, AUD/USD might still dip to the channel support near .9400 before resuming its climb.
Consolidation’s the name of the game for USD/JPY, as price has been forming higher lows and lower highs. The pair has been bouncing inside the symmetrical triangle on the 1-hour forex time frame, waiting for a chance to break out. Price is currently testing the triangle support with stochastic almost in the oversold area, suggesting a potential bounce back to the top. Better keep your eyes glued on this one, as a break in either direction could last as much as 150 pips, which is the same height as the chart pattern.
Loonie bulls, watch out! USD/CAD is sitting right on the rising trend line on its daily time frame while stochastic has already reached the oversold area. To top it off, the trend line lines up with the 50% Fibonacci retracement level and the 200 SMA, which makes it an even stronger support area. A bounce from this floor could take the pair up to its yearly highs or at least until the nearby area of interest at the 1.0900 level. On the other hand, a strong break below the trend line could be a sign that the uptrend is about to turn.
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.