Breakout alert! AUD/JPY has been trading inside an ascending triangle pattern on its 1-hour forex chart, still deciding which direction to go. A move past the 93.00 major psychological resistance could mean that price is headed further north, possibly by around 150 pips, which is the same height as the chart pattern. Similarly, a downside break below the triangle support around 92.75 could spark a 150-pip selloff. Stochastic is moving up, hinting that an upside break is might be more likely.
If you’d rather play the ranges, then you might like this setup on AUD/CAD’s 1-hour forex chart a little better. The pair has been bouncing back and forth between support at the .9700 major psychological level and resistance near the .9800 mark, and has just tested the top of the range. A move towards the bottom seems to be underway, as stochastic is also moving lower. If you’re an Aussie bull, you could wait for price to form reversal candlesticks at the bottom of the range and for stochastic to move up from the oversold region before going long.
Think the trend is your friend? Better take a look at this descending trend line setup brewing on AUD/NZD’s 1-hour forex time frame! After its recent decline, the pair looks ready to test the trend line once more, as price could retrace to the nearby Fib levels.Stochastic is still heading higher, indicating that buyers are in control of price action for now. The 38.2% Fibonacci retracement level might hold as resistance since this lines up with the trend line, broken support, and 1.5100 major psychological resistance.
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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.