I’ll start with that descending channel on EUR/AUD’s 4-hour forex time frame. As y’all know, one of the most conservative ways to play a descending channel is to look for resistance and shorting opportunities near the top of the channel. And lucky us since that’s where price is currently at. Also, resistance at the 1.4850 minor psychological level seems to be holding while the moving averages are indicating a healthy downtrend, with the 100 SMA acting as dynamic resistance to boot. Moreover, stochastic is already pointing down and is about to move away from the overbought area, so bears may be gaining control already. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
That there is the updated forex chart for last Friday’s descending channel setup on AUD/NZD since broke out of our original descending channel then promptly went back in again, forming the wider forex chart pattern that y’all see there. For today’s play, we’re looking at a potential mid-channel bounce since price seems have found some resistance around the mid-channel area at 1.0950. Also, the moving averages are now clearly in downtrend mode while stochastic is already pointing down and moving away from overbought territory, so forex traders who are bearish on the pair may be taking over soon. If that play is too aggressive for ya, then ya can always wait for price to test the top of the channel.
HappyPip beat me to the punch in identifying that there ascending channel on AUD/USD’s 1-hour forex chart. My chart is a little different, however, so there’s still some value in posting it. Anyhow, price tried to move past the price area of very significant market interest around the 0.7330 handle, but kept on failing each time. And the last failed attempt has resulted in price moving closer to the bottom of the channel, so we may be getting an opportunity to go long soon enough, especially since stochastic is already indicating oversold conditions. The only problem is that the price area around 0.7330 may put continue to put a cap on the pair’s upside moves, but a break past the aforementioned area could also mean a potential upside channel breakout.
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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