This forex pair has been moving up and down while trapped inside a tight, 90-pip trading range or rectangle, with resistance at the 89.00 major psychological level and support around the 88.10 handle. A conservative trading strategy would be trading within the range, but there’s a chance that an upside breakout will occur given the strength of the most recent up move. Looking at our technical indicators, the moving averages are still indicating an uptrend. Stochastic has already reached overbought territory, however, so forex traders who are bearish on the pair may be enticed to start nibbling soon enough.
AUD/CAD bounced off support at 0.9320 with sufficient and convincing momentum before trading sideways when it encountered resistance around 0.9500. In the process, a rather obvious bullish flag has formed. The pair later broke to the upside before trading sideways again when it found resistance around the 0.9660 handle, and forming yet another flag in the process. The moving averages are still in uptrend mode, which supports our bullish bias. Stochastic is already indicating overbought conditions, though, and momentum seems to be waning, so an upside breakout may not be in the works for now. Anyhow, the flag and its pole or mast is around 150 pips tall, so price could potentially move for the same amount should the forex chart pattern break.
I normally try to avoid using the 4-hour forex time frame for my Intrady Forex Charts Update, but this will help y’all see the bigger picture for the potential ascending channel for AUD/NZD. Anyhow, price broke past a price area of very significant market interest around the 1.0950 minor psychological level. And the moving averages have also crossed-over into uptrend mode for both the 1-hour and 4-hour forex time frames, which further supports our bullishness on this pair. Price is currently testing the bottom of the channel near the 1.0950, and the only thing left is for price to move and the forex chart pattern would be validated. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
Forex Chart Settings:
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