Looks like a symmetrical triangle pattern has formed on AUD/CAD’s 1-hour chart. A symmetrical triangle means that bulls and bears are fighting it out, but neither side is really winning, so price can break in either direction. Price seems to be using the 100 SMA as dynamic support, however, and stochastic is making its way up, so there seems to be a higher chance of an upside breakout for now at least. Anyhow, the forex chart pattern has a height of around 170 pips, so a breakout in either direction may have enough momentum to move for the same amount.
AUD/NZD climbed higher with great speed, but quickly lost momentum and began consolidating when it reached the 1.1270 handle, forming what seems to be a bullish pennant in the process. The pennant and its mast or pole is about 340 pips in height, so the pair could potentially move higher for the same amount if the forex chart pattern is validated. Looking at our technical indicators, the moving averages are indicating a healthy uptrend, and the 100 SMA may potentially act as dynamic support to boot. Stochastic, meanwhile, is indicating oversold conditions, but it’s beginning to point up, so bulls may be jumping in already.
Not a fan of breakout plays? Then how about playing the uptrend on AUD/CAD’s chart? As y’all can see, AUD/CAD is moving higher while trapped inside an ascending channel. And it just so happens that price is currently testing the channel’s resistance area, so y’all better start looking for opportunities to go long. Stochastic is milling about in the oversold region, which is a confidence booster. And while the moving averages are still in uptrend mode, price has been closing below the moving averages, which implies strong selling interest, so do be careful. In any case, 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.