Channel alert! AUD/JPY is currently sitting just below the 85.50 handle, which lines up with a rising channel support on the 4-hour time frame. If you zoom out quite a bit, you’ll see that the level has served as a legit area of interest for the pair since late November. Will the Aussie see more gains against the franc today? Stochastic is currently favoring the bulls while it’s chillin’ like a villain on the oversold territory, so you might want to bust out your trading plans while reward-to-risk scenarios are still sweet. However, if you’re one of them Aussie bears, then you could also wait for a break below said support levels and maybe even catch a retracement before putting on your short trade ideas.
Here’s a simple one for trend playas out there! AUD/CHF is having trouble breaking below the .7600 area, which isn’t surprising since it’s right smack at a rising trend line support AND an area of interest from way back in October. What’s more, stochastic is currently in the oversold territory and it looks like it’s about to go up. A long trade at current levels could give you decent pips especially if you aim for the pair’s previous highs near .7800. But if you trend the rising trend line is weak sauce and Aussie shorts are more your thing, then you could also wait for a downside break and aim for the .7475 or even its lows near .7300.
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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.