Price has been respecting this ascending channel on GBP/CAD’s 1-hour forex chart since the end of December. Presently, price is back near the bottom of the channel after failing to push past the mid-channel resistance area at the 2.0600 major psychological level. Looking at our technical indicators, the moving averages have recently crossed over into uptrend mode while stochastic is beginning to point up after reaching the oversold region, so forex traders who are bullish on the pair may be gearing up to push price higher. 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?
AUD/CAD has been moving in a steady uptrend on its 1-hour forex time frame, as price has been making higher highs and higher lows since Monday of this week. Price is recently grinding its way back down for a potential test of the channel’s bottom, so an opportunity to go long may be presenting itself soon. Incidentally, price has been closing above the 100 and 200 SMAs even though the moving averages are still indicating a downtrend, which implies strong buyer interest. Stochastic is still making its way to the oversold region, however, so the bears may still be in control and a downside channel break is a possibility.
As I always say, one of the most conservative way to play an ascending channel is to look for support and buying opportunities near the bottom of the channel. And that’s where price is currently at. The moving averages are still in a downtrend, though, and it looks like the 200 SMA even acted as dynamic resistance. But stochastic has just arrived at the oversold area, so forex traders bullish on the pair may be taking over soon. One primary problem with this chart is that the pair was violently rejected when it reached the price area of interest at 0.9370. If that resistance area holds, then we may be looking at a potential downside 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