Bounce or break? AUD/CAD is currently sitting at the bottom of its range on the 1-hour forex time frame, still deciding whether to head lower or to move back up. A bounce could take price back to the top of the range, which is around the .9835 level, while a break below the .9750 minor psychological support could mean more losses for the pair. Stochastic appears to be favoring a downside break, as the oscillator is still making its way down to the oversold region. Take note that the range is roughly 85 pips in height, which suggests that the resulting break could be of the same size.
Check out this rising wedge forex pattern forming on GBP/AUD’s 1-hour time frame! Could this be a sign that buyers are losing strength? Stochastic is still climbing, which indicates that there might be a bit of buying pressure left to push the pair to the top of the wedge near the 1.8700 major psychological level. If this holds as resistance, the pair could make another test of the wedge support or perhaps go for a breakdown. The chart formation is nearly 400 pips high, which suggests that the potential selloff could be of the same amount.
The rising channel on EUR/AUD’s 1-hour forex chart is still intact, confirming that the pair is in a steady short-term uptrend. Price seems to have found support at the mid-channel area of interest and may be due to head higher, as stochastic is moving out of the oversold region as well. In this case, EUR/AUD could make another test of channel resistance somewhere around the 1.4600-1.4650 psychological levels. If these hold as resistance, EUR/AUD could make its way back to the channel support near the 1.4450 minor psychological level.
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.