Looking for a breakout play? Well, lucky you, since I’ve found this here symmetrical triangle on AUD/CHF’s 1-hour forex chart. Since this forex chart pattern is a symmetrical triangle, then that means that the bears and the bulls have a balance of power at the moment, so we don’t really have a directional bias. And the moving averages aren’t really helping since they are currently oscillating, but it does look like both the 100 SMA and 200 SMA are acting as dynamic resistance. Stochastic seems to clearly favor an upside move, though, since it’s currently moving up, so forex traders who are bullish on the pair may still be in command. In any case, if the pattern does break, then it could move in either direction for about 300 pips since that is roughly the height of the triangle.
It seems like the trading range or rectangle that we identified back on Wednesday is still intact. Well, ya know what they say, right? When life gives ya lemons, go make some lemonade… or a lemon-powered battery. Anyway, price seems to be testing the resistance area around the 1.4900 major psychological area, but stochastic is already pointing down, so the bulls may already be exhausted. If a down-move does occur, then the bears would probably be gunning for the support area around the 1.4650 minor psychological level. The only worrying thing is that price has been closing above the moving averages, so perhaps the bulls have the upper hand.
EUR/CHF has been grinding higher in a rather messy-looking ascending channel. Price currently seems to be meeting some sellers mid-channel, so there’s a good chance that price will test the bottom of the channel yet again. The stochastic oscillator seems to agree since it is currently pointing down, hinting that forex traders who happen to be bearish on the pair may be wrestling control from the bulls. As for the moving averages, the 100 SMA is still above the 200 SMA and they’re too far for a potential cross-over, so the uptrend is still intact and our main directional bias is still therefore to the upside. In any case, make sure to practice proper risk management should you find a trade based on this or any of the other 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