After being rejected by resistance around the 2.0050 minor psychological level, the downward pressure on GBP/AUD finally stalled when it reached the 1.9650 minor psychological level, an area of significant market interest in the past, as highlighted by the rectangle? Our directional bias is to the upside since the trend is still up, although the moving averages are already sloping downward for a potential cross-over into bearish territory. Stochastic, at least, is still down, hinting at potentially oversold conditions.
Remember last week’s ascending triangle setup for GBP/NZD on the 1-hour chart? Well, price did break out of that triangle but immediately encountered sellers. As a result, a descending triangle has formed, which is kinda weird because the overall trend is still up. But I’ll take whatever I can get.
Since this is a descending triangle in an uptrend, we don’t really have a directional bias, so forex traders studying this chart should prepare for movement in either direction. Personally, I favor an upside move because price seems to be using the 100 SMA as dynamic support and forex traders who are bearish on this pair have been unable to force a close below the 200 SMA yet. Also, the overall trend is still up.
I tried to go for an all-pound chart art entry, but alas, my efforts were in vain because I couldn’t find a decent setup on the other pairs, so have this chart instead.
NZD/CHF has been consolidating into what looks like a symmetrical(ish) triangle (or a bearish pennant on the higher time frames). Our directional bias is to the downside because the the moving averages are still in downtrend mode. But since this is a symmetrical triangle, an upside breakout could occur as well, so prudent forex traders should take that into account. Stochastic, for one, is currently in oversold territory, indicating that sellers may potentially be exhausted.
Forex Chart Settings:
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.