After a major down move, AUD/JPY began trading sideways until it formed a 90-pip trading range or rectangle on its 1-hour forex chart, with resistance and support respectively around the 82.20 and 81.30 handles. Price just recently bounced off the support area around 81.30, and is even forming what looks to be a mini double bottom pattern, so buyer interest is apparently strong. Be careful, though, since the moving averages are still indicating a healthy downtrend and the 100 SMA looks like it’s acting as dynamic resistance to boot. Stochastic is still pointing up, however, so forex traders who are bullish on the pair may still be in control.
EUR/USD has been bouncing up and down while trapped inside a rectangle for the past few days now. The rectangle’s resistance is around the 1.0930 handle while its support area is around the 1.0820 handle, which gives us a 110-pip trading range to play with. Presently, price is moving away from the rectangle’s resistance area, but be careful since the moving averages have just recently crossed-over into an uptrend, so the 100 SMA could potentially act as dynamic support for an upside breakout. Stochastic is still pointing down and moving away from oversold territory, so we’re still good. Just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
GBP/CHF has been trading inside a nice, 180-pip rectangle with resistance at 1.4580 and support around the 1.4400 major psychological level. Price has already moved up and is at the halfway point, so conservative forex traders should probably sit this one out. Looking at our technical indicators, the moving averages are still in downtrend mode while stochastic is pointing up after reaching the oversold area, so forex trader who are bullish on the pair may not be exhausted just yet and the pair could still potentially test the rectangle’s resistance area at 1.4580.
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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