It looks like EUR/CAD still can’t make up its mind where to go, as price keeps consolidating inside a symmetrical triangle chart pattern on its 4-hour forex time frame. The pair seems to have found resistance at the top once more and might be headed lower while stochastic is moving down from the overbought area. If sellers are strong enough, they could push for a downside break of support near the 1.4150 minor psychological level and lead to a longer-term drop. This might last by around 800 pips, which is roughly the same height as the chart pattern.
Can’t get enough of triangles? Here’s another one on EUR/AUD’s 1-hour forex chart! The pair is gearing up for a test of the triangle support around the 1.4550 minor psychological level. A bounce might take place since stochastic is already indicating oversold conditions, which means that euro bears need to take a break. If the bottom of the triangle holds as support, EUR/AUD could climb back to the top around the 1.4700 major psychological level. Make sure you set those stops right if you’re planning on going long!
Last but definitely not least is a potential trend play on AUD/NZD’s 1-hour forex chart. As you can see, the pair has been trading below a descending trend line and is pulling up for a test of resistance. At the same time, stochastic has reached the overbought zone and is starting to head lower, indicating that sellers are ready to take control of price action. If this happens, AUD/NZD could resume its downtrend and head back to the recent lows around the 1.0300 major psychological support or even create new lows!
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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.