For today’s higher timeframe charts update, we’ve got USD/CAD approaching a rock solid resistance area and EUR/AUD in textbook channel lower. Check’em out homie!
Look at that major resistance level on USD/CAD above! If we do get a retest, is it time to go long or is it another chance for the bears to take charge?
With the market slowly grinding higher, giving us higher lows as we approach that major resistance level, it’s an easy call to say the best move is an upside breakout. But with the stochastic indicator flirting with overbought conditions, it’s possible that technical sellers could be waiting to hop back in around the 1.3600 area to take back control.
It doesn’t get any simpler than this! EUR/AUD’s steady flow of lower “highs” and “lows” has created a textbook channel lower, and the market is now testing the top of the channel.
With the stochastic indicator showing potentially overbought conditions as EUR/AUD is not only testing the top of the channel, but also the falling 100 and 200 simple moving averages, it’s a pretty clear short technical setup for those with a bearish predisposition.
But that doesn’t mean this also can’t be a long setup, and if the market does continue that strong rise higher from recent swing lows around 1.3750 to break the upper channel bounds, that could be a signal for the bulls to hop in to start a new trend higher.
Which ever setup you take, remember that risk management comes first! Good luck and trade safe!