I know I’ve shown y’all this double bottom pattern on AUD/USD’s 4-hour forex chart before, but this is it fellas! The pair is currently testing the neckline of the chart formation near the .7300 major psychological mark and might be ready for an upside break. Stochastic is still heading higher while the moving averages are starting to make an upward crossover, hinting that the reversal is about to begin soon. The chart pattern is around 350-400 pips tall so the resulting uptrend might last by at least the same number of pips, possibly taking AUD/USD up to .7700. However, if the neckline still holds as resistance, the pair could make another bottom around the .6900 levels.
Next up is this short-term rising wedge setup on EUR/USD’s 1-hour forex time frame. A breakout is bound to take place soon, as the consolidation keeps getting tighter and tighter, but stochastic is on middle ground and is barely offering any good clues on which direction EUR/USD might take. The 100 SMA is currently above the longer-term 200 SMA, though, so the path of least resistance might be to the upside. If the pair brreaks above the top of the wedge around the 1.1300 major psychological mark, price could head up by an additional 200 pips or the same height as the chart pattern. However, if the 1.1300 handle keeps gains in check, another test of the wedge support at the 1.1250 minor psychological level and 200 SMA could be in the cards.
Last but not least is this potential break-and-retest setup forming GBP/CAD’s 4-hour forex chart. The pair recently broke below the neckline of its head and shoulders pattern, indicating that a downtrend is underway. Price bounced off support at the 1.9800 major psychological level, leading to a quick correction from the breakout move. Using the Fib tool on the latest swing high and low shows that the former neckline support is right in between the 50% to 61.8% Fibonacci retracement levels, which might hold as resistance. The 100 SMA is below the 200 SMA, confirming that the selloff is likely to carry on, while stochastic is starting to move down from the overbought zone to indicate a pickup in selling pressure.
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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.