EUR/AUD has been trending lower while apparently trapped inside a rather messy-looking descending channel. Price is currently milling about the channel’s support area, which happens to line up with the price area with significant market interest at 1.5240 (dashed line), so chances are good that the pair may be moving back up again, especially since stochastic is about to enter the oversold region. Make sure to practice proper risk management, however, since the way price is currently milling about could also mean that sellers are trying their best to push the pair lower for a possible channel breakout.
AUD/JPY has been trading sideways for some time while respecting resistance at 80.40 and support at 78.40, which gives us a relatively wide 200-pip trading range or rectangle pattern to play with. Price recently tested the channel’s support area and currently looks like it’s about ready to go back up again, so better start looking for opportunities to go long if you plan to trade within the range. Do note, however, that price failed to test the rectangle’s resistance area before being sent back down, which implies strong selling interest. Also, stochastic is about to reach overbought territory already.
If that descending channel on GBP/AUD’s 1-hour chart looks familiar to you, that’s probably because read up on last Friday’s intraday forex charts update. If you did and you were able to find an opportunity to go short, then give yourself a pat on the back because the pair dropped over 300 pips from last we saw it. For those of ya who missed the down move, worry not because the channel is still intact and we’re gonna play it again. This time, we’re waiting for the pair to pullback to the price area with significant market interest at 1.9340, which aligns nicely with the channel’s resistance area. The 100 SMA could also potentially act as dynamic resistance if or when price get there. Moreover, stochastic is beginning to approach the overbought region, so the pair may start getting sellers soon.
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