USD/CHF has been trending higher while trapped in that ascending channel. And y’all better start looking for opportunities to go long since the pair is about to test the channel’s support area, which happens to line up with the area of interest at the 0.9830 handle. Also, note that the 100 SMA will be serving as a dynamic support, which gives three reasons as to why there’s a better-than-average chance that support will form. Not only that, stochastic is also signalling oversold conditions, so buyers may start jumping in soon.
Are you in the mood for a breakout trade? If you are, then check out that sweet bullish pennant on AUD/JPY’s 1-hour chart. A bullish pennant, as the name suggests, is a bullish chart pattern, so our main directional bias is obviously to the upside, although a downside breakout occurs from time to time as well. Anyhow, the pennant and its mast is a whopping 500-pips tall, so a breakout move could potentially last for the same amount. Just make sure to keep a close eye on how price reacts to the 80.30 handle (dashed horizontal line), since that is a price area with very significant market interest, even on the higher time frames.
The price action on GBP/JPY’s 1-hour chart is very similar to that of AUD/JPY’s, but one of the main differences is that a bullish flag has formed on GBP/JPY’s chart rather than a pennant. They’re both bullish patterns, though, so no biggie. Another difference is that the height of the flag pattern is an eye-popping 960 pips. 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.