If you were gangsta enough to enter aggressively yesterday, then you were probably able to grab around a hundred pips, so go ahead and give yourself a pat in the back. If not, well, just know that the trading range or rectangle that we identified yesterday is still intact. The resistance area is still at the 0.6280 handle while support is around the 0.6090 handle. Currently, price is about halfway through to the top of the trading range, but stochastic is already signalling potentially overbought conditions, so perhaps some sellers may be tempted to join in. If enough sellers start dumping the pair, then price may move back to the support area around the 0.6090 handle. And if support holds, then we may get another trading opportunity just yet.
The trading range that we identified on EUR/NZD’s 1-hour forex chart yesterday is still alive and well, but I’ve got something new for today. Oh, by the way, congratulations if you were able to play yesterday’s setup. Getting back on topic, I’ve got a descending channel setup for today’s play. And as y’all know by now, the most conservative way to play a descending channel is to look for resistance near the top of the channel. And since price is already halfway to the bottom of the channel, then that means that we’re looking at a counter-trend setup, so only the stout of heart need apply. Anyhow, price is currently hesitating mid-channel and stochastic is already at oversold territory, so forex traders who are bearish on the pair may be exhausted already and there’s a good chance for an upside move. Be careful, though, since the moving averages are clearly in downtrend mode, and as I said, yesterday’s trading range is still intact and today’s setup is essentially a counter-trend setup.
And now for something new and different. I have to admit that a 4-hour forex chart is not exactly an ideal time frame for an intraday setup, but I just can’t pass up showing you guys this nifty chart. As y’all can see, AUD/USD has been moving inside a descending channel forex chart pattern since April. But price seems to have difficulty pushing past support around the 0.6950 minor psychological level, forming a potential double bottom reversal pattern in the process. The neckline is around the 0.7270 handle, which also happens to show a false upside breakout, so buyer interest is indeed strong. Looking at our technical indicators, the moving averages are now coming closer together for a potential cross-over into uptrend mode. Stocastic, meanwhile, is now pointing up after reaching the oversold region, so buyers may be taking over already. As usual, make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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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