I’ll lead today’s intraday forex charts update with an updated chart for yesterday’s channel setup on NZD/JPY’s 1-hour forex chart. But before anything else, congratulations to those who were able to find a trade based on any of yesterday’s channel setups since all three were very profitable. For today’s play, conservative forex traders should probably sit this one out since price is currently at the bottom of the descending channel, but it’s beginning to move back up again. Looking at our technical indicators, the moving averages are still clearly in downtrend mode, but stochastic is pointing up and moving away from the oversold area, so buyers may be taking over already.
Next up is another descending channel on yet another yen pair. This time, we’re looking at the 1-hour forex chart for AUD/JPY. As y’all can see, price recently bounced off the channel’s support area around the 79.30 handle and is presently making its way higher. As y’all know, the most conservative way to play a descending channel is to look for resistance near the top of the channel, so conservative forex traders should wait for pair to reach the channel’s top area. As for the more aggressive traders, just know that stochastic is still pointing up, but is still some way away from the overbought area, so there’s a good chance that the pair will be able to reach the channel’s top area, or at least the dynamic resistance at the 200 SMA.
Finally, I have this here descending channel on USD/JPY’s 1-hour time frame. Woah! I just realized that I delivered a channel + yen double combo. That’s cool! Anyhow, like with the other two setups, price is making its way back up from the channel’s bottom area. Stochastic is also pointing up but it’s not yet indicating overbought conditions. 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