Don’t look now but GBP/AUD is currently sitting right at the bottom of the symmetrical triangle chart pattern on its 4-hour forex chart! At the same time, stochastic is indicating oversold conditions, which means that sellers are taking a break and that buyers might jump in. If that happens, the pair could head back to the top of the triangle just below the 1.9500 major psychological resistance. If sellers refuse to give way though, price might carry on with its drop and break below the triangle support at 1.9150.
Here’s another potential triangle play for those interested in trading the pound crosses! GBP/NZD has been forming lower highs and finding support at the 1.9400 major psychological level, creating a descending triangle pattern on its 4-hour forex time frame. Price seems to be testing the floor at the moment while stochastic is climbing out of the oversold area, suggesting that another move higher is possible. If buyers are strong enough, they could push for a break above the triangle resistance around the 1.9500-1.9550 levels.
Careful, Aussie bears! AUD/CAD might be in for a long-term reversal from its recent downtrend, as the pair appears to be creating a double bottom formation on its 4-hour forex chart. Support around the .9500 major psychological level seems to be holding like a boss and price could make its way up to the neckline resistance at .9700 anytime now. If the pair makes an upside break past .9700, further gains of approximately 200 pips could be seen. For now, stochastic is hinting that sellers are still trying to gain the upper hand.
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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.