Are you bullish on the Aussie? If you are then, check out that there ascending channel on AUD/USD’s 1-hour chart. As you can see, the pair is about to test the channel’s support area, so better get ready. There’s chance that the 200 SMA may act as dynamic support and that price will climb back higher without testing the channel’s support area. Such a scenario is not likely, though, since stochastic is still some distance away from oversold territory.
Not really all that bullish on the Aussie? Then how about this messy-looking ascending channel for GBP/AUD? Looking at the chart, you can see that the pair has been trending steadily higher and price is currently near the channel’s support area, with the 100 SMA acting as dynamic support, and the moving averages having just recently crossed-over into uptrend mode. Just know that price seems to be having difficulty moving past the price area of interest at the 1.7450 minor psychological level, so there’s a chance that the pair could stage a downside breakout, especially since stochastic is already indicating overbought conditions. In any case, just make sure to practice proper risk management, okay?
If you don’t really have a trading bias on the Aussie, then you may like that there chart. What he have there is a rectangle with resistance at the 1.4600 major psychological level and support at the 1.4530 handle, which gives us a 70-pip trading range. A rectangle breakout could occur in either direction, so you may wanna keep an eye on this one. It’s a bit tight, but it’s possible to trade within the 70-pip range. And if that’s your fancy, then just know that price is about to test the rectangle’s resistance area, so get ready to go short if resistance holds.
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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.