Let’s start off with a simple range setup on GBP/JPY’s 1-hour forex chart. As you can see, price found support at the 176.00 major psychological level and resistance near the 179.50 minor psychological mark. Price is hovering close to the top of the range for now and may be due for another test of resistance, as stochastic is moving up from the oversold zone. If the top of the range still holds as resistance, the pair could move back to the bottom and test 176.00 once more. Just make sure you set your stop losses right in case a breakout occurs!
Looking to catch USD/CAD’s climb? Well, you might wanna keep your eyes glued to this ascending channel forming on the pair’s 1-hour forex chart. Price is just testing the top of the channel for now and may head back to support at the 1.2450 minor psychological level. Stochastic is already in the overbought region anyway, which means that buyers are taking a break and that sellers could take control. Given the strong bullish momentum on this pair though, an upside break from the channel resistance at 1.2550 might still be possible.
Check out this head and shoulders pattern that’s just beginning to form on AUD/CAD’s 4-hour forex chart! This could be a sign that the recent uptrend is about to be reversed, although price has yet to complete the right shoulder and test the neckline at the .9800 major psychological support before confirming the potential downtrend. If that happens, price could fall by as much as 200 pips, which is the same height as the chart pattern. If the uptrend carries on though, AUD/CAD could head back to parity.
Slow Stochastic: 14,3,3 100 SMA: Blue line 200 SMA: Red line 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.