Looking for a quick AUD/USD trade? You might wanna take a look at this descending triangle forex setup on its 1-hour time frame! The pair seems to be bouncing off support around the .7200 major psychological level and might be headed back to the triangle resistance near .7275. Stochastic is already indicating oversold conditions and appears to be turning higher, which suggests that Aussie bulls are ready to take control of price action. However, the 100 SMA is still below the longer-term 200 SMA, hinting that the path of least resistance is to the downside. If Aussie bears stay on top of their game, a downside triangle break could occur and take the pair down by an additional 150 pips or the same height as the chart pattern.
If you’re in the mood for a simple trend play, then you might like this channel play on CAD/JPY’s 1-hour forex chart. The pair has been trending lower inside a descending channel and is currently testing the resistance near the 92.00 major psychological mark. If this area continues to keep gains in check, a move towards the channel support around 90.50 to 91.00 might be in order. Stochastic is pointing down anyway, which means that sellers are getting stronger, while the 100 SMA is below the 200 SMA. However, the moving averages appear to be holding as dynamic support levels for now, which means that an upside break past the channel resistance could still be possible. Better set your stop past the previous highs if you’re gonna short.
Last but most certainly not least is this potential triangle breakout looming on EUR/JPY’s daily forex time frame. After breaking below the symmetrical triangle support last week, the pair made its way down to form a descending triangle on the longer-term chart. Price is currently testing the support at the 133.50 minor psychological level, with a downside break likely to take the pair down by an additional 800 pips or the same height as the triangle pattern. Stochastic is still heading south, which means that bearish momentum is in play. However, the 100 SMA is above the 200 SMA so a bounce back to the triangle resistance near 136.00 might be in the cards.
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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.