This here is the updated chart of the ascending channel that we identified on USD/CHF’s 1-hour forex time frame back on Wednesday. As y’all can see, the channel held and price was forced back up for a short while before coming back down again to retest the bottom of the channel. If the channel holds again and price moves up to the neckline at the 0.9790 handle, then we will have a validated double bottom inside an ascending channel, which gives us a double dose of confidence that price will keep going up. Stochastic is currently in oversold territory, but the moving averages are concerning since they are about to cross-over into downtrend mode.
Do ya wanna show just how gangsta ya are? Then try and find a trade opportunity on this 1-hour forex chart for EUR/NZD. As y’all know, the safest way to play an ascending channel is to look for support near the bottom of the channel. And since price is currently near the top of the channel, then that means that is a counter-trend setup, which is why you have to be gangsta if ya wanna look for a trade based on this chart. Stochastic, at least, is still pointing down, so forex traders who are bearish on the pair may still be in control. If the downmove is sustained, then the bears would probably be gunning for the previous resistance area around 1.6780, as highlighted by the rectangle.
This is similar to the setup we have for USD/CHF. The main difference is that price managed to violate the ascending channel before forming a potential double pattern. Stochastic is also indicating potentially oversold conditions while the moving averages are coming closer together for a possible cross-over into downtrend mode. If price does break past the neckline at 124.60, then there’s a good chance that the pair will move higher for about 80 pips since that is roughly the height of the forex chart pattern. Incidentally, that price area will line up nicely with the top of the channel.
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