Looks like AUD/CHF has been respecting a trading range between the 0.7270 and 0.7120 handles. The basic way to play a trading range is to either look for support at the bottom of the range or look for resistance at the top of the range. And lucky us since price is approaching the bottom of the trading range. The moving averages are oscillating, indicating that there is no clear trend, so the trading range would most likely hold. And while price is still a few pips away from the 0.7120 handle, stochastic is already pointing to potentially oversold conditions, so we may see buyers start to nibble soon.
As with all forex chart patterns, there is a potential that price will try to break out. In this case, price is moving down with convincing momentum, so if enough forex traders bearish on the pair come in, we may see a potential downside breakout.
Pound bulls, huddle up! GBP/CHF has been moving up in a neat looking ascending channel. Now, price is consolidating near the bottom of the channel and the 100 SMA is acting as dynamic support to boot. Stochastic is also moving up from oversold territory, so buyers are probably loading up already. If the pair does move up, make sure to observe how price reacts to the 1.4750 minor psychological level since that price level is both a recent high and a price area of significant market interest.
Price is consolidating just above the 50% Fibonacci retracement level, with the 200 SMA acting as dynamic support. The current price area around the 0.6400 major psychological level has also seen significant market interest in the recent past and stochastic is indicating potentially oversold conditions, so we may be seeing some buyers soon. Also, the 100 SMA and 200 SMA have just recently crossed-over into uptrend mode.
Overall, we have a lot of technical arguments for an upside move, but do make sure to practice proper risk management should you find a trade opportunity based on any of these charts.
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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.