This here is the updated 1-hour forex chart for last Thursday’s descending channel setup. If y’all remember, I mentioned that price has been closing above the moving averages and that I was suspecting a pontential upside channel breakout. Well, looks like my suspicions were correct since the pair did break out to the topside.
The bullish momentum looks pretty healthy, so for today’s play, we’re lookin’ to ride a pullback. And if we apply our Fibonacci tool, we can see that price is already consolidating at the 50% retracement level. Stochastic is also pointing to oversold conditions, so the bears may be exhausted already. The moving averages have also crossed-over into uptrend mode. I still think the most conservative pullback area is the 61.8% retracement level, though, since that level lines up quite nicely with the 1.1000 major psychological mark, a price area of significant market interest.
If you followed the link above to last week’s intraday charts update, you’ll also know that this one is another updated 1-hour forex chart. As I stated back then, I was expecting support to form at the bottom of the descending channel near the the 2.1020 handle. And as it turns out, support did form, sending price higher by over 300 pips, so congratulations if you managed to ride that. If not, don’t worry because we may have another opportunity soon since the upward movement has stalled mid-channel, which is a possible hint that price may be moving back down soon. Stochastic doesn’t seem to agree, though, since it is currently pointing up after spending some time in the oversold region, which means that bulls may still have enough fight to push the pair higher.
Don’t worry, this here is a brand new chart. And as ya’ll can see, USD/JPY has been moving downward inside a descending channel. I’m sure y’all know that the basic way to play this forex chart pattern is to look for resistance near the top of the channel. And lucky us since price is currently milling about near the top of the channel, which also happens to sit right smack on the 123.70 handle, a price area of significant market interest in the past. Our technical indicators are also in our favor since the moving averages just crossed-over into downtrend mode and stochastic is currently in overbought territory, hinting that forex traders bullish on the pair may be exhausted already.
As usual, make sure to practice proper risk management should you find a trade 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.AUD/CAD 1-hour Forex Chart