Breakout or fakeout? AUD/CAD is lollygagging at the .9475 handle, which has been serving as an area of interest since early May. Are we seeing a retest of the broken ascending triangle pattern on the 1-hour chart or will the level serve as resistance this time around? The SMA crossover as well as the rising trend line is on the bulls’ side for now, but keep your eyes peeled in case the bears manage to defend the level and inspire a downside breakout of the triangle that we’re watching!
Here’s an easy peasy trend play for ya! GBP/USD is trading just above the 1.4450 area, which is near a rising trend line and 200 SMA support on the 4-hour time frame What’s more, stochastic is forming what looks like a bullish divergence on the chart. Stop losses below the trend line could make for a good trade if you think that Cable will aim for its previous highs. Of course, you could also wait for a break below those support levels if you’re one of them pound bears.
Last one for this batch of charts is a nice and simple candlestick pattern on USD/CHF. See, the pair is sporting a possible evening star on the daily time frame. What makes this setup more interesting is that the pattern is right smack at the .9900 major psychological level and stochastic is chillin’ like a villain on the overbought territory. Think the dollar is about to lose pips against the franc? Shorting at current levels could get you a good reward-to-risk ratio especially if you aim for the previous lows. Just make sure to use wide stop losses!
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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.