That there is the updated chart for the ascending channel that we found on AUD/USD’s 1-hour forex time frame yesterday. As y’all can see, price is already testing the channel’s bottom, which also happens to line up with a price area of very significant market interest around the 0.7200 major psychological level, so we may be seeing some buyers soon. Stochastic is also at the oversold area already, but it’s still pointing down so forex traders who are bearish on the pair may not be out of steam just yet. Another worrying thing is that the moving averages have already crossed-over into downtrend mode, so there’s also a chance that the pair will attempt a downside channel breakout.
Price is currently testing the price area of interest around the 1.5200 major psychological level. If resistance breaks, then we may get a big rally, especially since the moving averages are now indicating a healthy uptrend. But if resistance holds, then a potential double top may form, with the neckline at the 1.4970 handle. Stochastic seems to support the latter scenario since it’s already pointing down and is about to move away from overbought territory.
AUD/CAD has been grinding ever higher while trapped inside an ascending channel since early November. And price is currently making its way down for a potential test of the channel’s bottom, so we may be getting an opportunity to go long soon. Stochastic is already indicating oversold conditions, however, and the 100 SMA could potentially act as dynamic support, so there’s a chance that price may not test the channel’s bottom at all. 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?
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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