Remember that channel resistance that we were looking at last week? Well, it looks like the bulls manage to break above the downtrend pattern after all! But after managing to hit the .7650 handle, AUD/USD looks ready for a bit of retracement. The .7585 area is a pretty good place for a retracement, as it’s near the broken channel resistance as well as the Fib retracement levels and the 100 and 200 SMAs on the 1-hour chart. Are we looking at a possible break-and-retest situation? Watch this one closely for any signs of bounces along the Fib levels!
Trend warriors huddle up! GBP/CHF is forming what looks like a bearish pennant on the 1-hour chart. As the School of Pipsology tells us, pennants like these are continuation patterns that ususally pop up after a strong move. A break below the consolidation could pave the way for a move to the pair’s previous lows. Of course, the bulls could always hustle enough muscle to break above the 100 and 200 SMAs and push the pair all the way to the 1.2550 levels. In any case, make sure you already have your trading plans at hand before we see a breakout!
Last one up for this batch of charts is a simple support play on EUR/CAD’s 4-hour time frame. The pair is hitting the 1.4350 – 1.4400 psychological levels, an area of interest that has sort of been holding as support since June. Oh, and can you see stochastic chillin’ like a villain on the oversold territory? A long trade around the support areas could give you a good reward-to-risk ratio especially if you think that the pair will pop back up to the nearest resistance at 1.4600. Just make sure you practice good risk management when executing your trading plans!
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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.