EUR/AUD has been trading sideways while seemingly respecting resistance at 1.5590 and support at 1.5400, which gives us a nifty 190-pip trading range or rectangle pattern to play with. If you’re looking to play within the range, then heads up because the pair is approaching the rectangle’s resistance area while stochastic is already signalling overbought conditions, so an opportunity to go short may present itself soon.
Looks like there’s a better-than-average chance that CAD/CHF may move lower sooner or later since a rising wedge pattern has now clearly formed on its 1-hour chart. And if a downside breakout does occur, then the pair could potentially move lower for 120 pips or so, based on the height of the forex chart pattern. However, do note that there’s also a chance that the pattern will get invalidated since the moving averages have already crossed-over into an uptrend, with the 100 SMA apparently acting as dynamic support.
A symmetrical triangle is forming on CAD/JPY’s 1-hour time frame, which means that bulls and bears are duking it out but neither side is really winning, so a breakout to the upside is just as likely to occur as a downside breakout. Anyhow, if a breakout does occur, then price could move higher or lower for around 160 pips since that’s roughly the height of the pattern. 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.