First up for today’s channel pattern bonanza is that there ascending channel on CAD/CHF’s 1-hour chart. As y’all can see, price is currently testing the channel’s support area and said support area seems to be holding. Also stochastic is now indicating oversold conditions, so buyers may start coming in soon. The only worrying thing is that the moving averages have just recently crossed-over into downtrend mode, so there’s a chance that the pair will attempt a downside breakout.
Next, we got that there descending channel for CAD/JPY. And as y’all can see on the chart above, the pair is currently gunning for the channel’s resistance area, and there’s a better-than-average chance that resistance may hold since it lines up rather nicely with the 84.20 handle, which is a price area with significant market interest, even on the higher time frames. Also the moving averages are indicating a downtrend, and the 200 SMA may even act as dynamic resistance. Moreover, stochastic is already signalling overbought conditions.
Finally, we’ve got yet another ascending channel. This time, we’ve got one for AUD/CAD. Similar to price action on CAD/CHF’s ascending channel, price is currently hugging the channel’s support area. However, stochastic is already signalling oversold conditions, so there’s a good chance that bears are getting ready for a downward push, but the moving averages are in uptrend mode at least. Anyhow, 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.