Last time we looked at it, price was still making its way to the top of this ascending channel on AUD/CHF’s 1-hour forex chart. Now, price is making its way back down again and is currently hesitating at the mid-channel area. As y’all know, the most conservative way to play an ascending channel is to look for support near the bottom of the channel, but more aggressive traders may be looking for trading opportunities already since stochastic is already pointing up, which could mean that forex traders who are bullish on the pair may be wrestling control from the bears already.
I’ve got another ascending channel for this chart, but the only available trading scenarios are (1) an upside channel breakout and (2) a countertrend bounce from the channel’s resistance. Both scenarios aren’t exactly conservative, so this chart is only recommended for the stout of heart. Anyhow, both scenarios are actually workable. Stochastic is already indicating potentially overbought conditions, which supports the bounce-from-resistance scenario. The widening moving averages, meanwhile, indicates that the uptrend is healthy, which, together with the convincing bullish momentum, supports an upside channel breakout scenario.
I’ve got yet another channel on GBP/NZD’s 1-hour forex chart, but this one is a little bit different since it’s a descending channel. As y’all can clearly see, price has been bouncing around a descending channel since late September. And price just bounced off the top of the channel while using the 100 SMA as dynamic resistance. Price is still only at the halfway point, but stochastic is already pointing up and moving away from oversold territory, so there’s a good chance that price will be testing the top of the channel again real soon. 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