Remember that EUR/GBP rising channel setup I showed y’all a few days back? Well, it looks like resistance did hold and the pair will be staying inside the range for now. Price is gearing up to make a test of the forex channel support around the .7970 level, with a bounce likely to take it back up to the top at .8030. Stochastic is already climbing higher though, indicating that euro bulls are eager to push the pair back up. If you’re bearish on this pair, you could sit tight and wait for an actual test of channel resistance.
If you’re looking for quick scalp trades, then you might wanna check out this short-term falling channel on EUR/CAD’s 1-hour time frame. The pair has been in a steady downtrend, as price made lower highs and lower lows for the past few days. It looks like a bounce off the channel support just took place and EUR/CAD might test the top once more. Stochastic is on middle ground, unable to give any clear clues at the moment, but it wouldn’t hurt to watch out for reversal candlesticks around the top of the channel near the 1.4550 minor psychological mark.
If you’re more comfortable with longer-term trend plays, then you might like this channel setup on AUD/USD’s 4-hour forex chart better. The pair has just bounced off the top of the channel and is showing downside momentum, possibly aiming for the bottom of the channel at the .9200 major psychological level. Stochastic is already indicating oversold conditions though, which means that bulls aren’t gonna give in too easily and might push for another test of the channel resistance. If you’re bearish on this one, it’s not too late to hop in when price makes a break below yesterday’s lows and set your sights on the channel support.
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.