Steady as she goes! USD/CHF has been steadily moving ever higher inside a neat-looking ascending channel on its 1-hour forex time frame. And price is about to test test the channel’s support area, so a buying opportunity may present itself soon. Looking at our technical indicators, the moving averages are showing a very healthy uptrend, with the 100 SMA currently acting as dynamic support on several occasions. Stochastic is already pointing up and moving away from the oversold region, though, so there’s a small chance that price will begin moving back up again without testing the channel’s support area.
Reversal alert! A potential double top is forming on the 1-hour chart for GBP/CHF. Conservative forex traders may want to wait for the neckline at the 1.5300 major psychological level to be broken before positioning-in. As for aggressive forex traders, just note that stochastic has already reached oversold territory, so it may be a bit unsafe since pound bulls may be enticed to come in. Anyhow, the forex chart pattern’s height from the tops to the neckline is about 240 pips, so if the neckline is broken, and the double top is validated, then there’s a good chance that price would have enough momentum to go down for the same amount.
I’ve got yet another ascending channel setup for today’s Intrady Forex Charts Update. This time, we’re looking at CAD/CHF’s 1-hour forex chart. And as y’all can see the pair has been bouncing around inside a rather messy-looking ascending channel since late October. And as I always say, one of the most conservative way to play an ascending channel is to look for buying opportunities near the bottom of the channel, which is where price is currently at, so lucky us. Anyhow, the moving averages are in uptrend mode, with the 200 SMA acting as dynamic support. As for stochastic, it tried to leave the oversold area, but was pushed back down again. This could mean that forex traders who are bearish on the pair may not be out of steam just yet, so a downside breakout is a possibility. 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?
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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