If that seems familiar to you, then that’s probably because you were able to read up on last Thursday’s intraday forex charts update. Anyhow, price moved about 130 pips from last we saw it and is presently testing that there ascending channel’s support area, so better start looking for opportunities to go long if you’re bullish on the pair, especially since stochastic is already signalling oversold conditions and the channel’s support area lines up nicely with thee area of interest at the 0.9750 minor psychological level.
Bulls and bears are playing a game of tug-of-war on GBP/CAD’s 1-hour chart. Neither sides has a clear advantage, though, which is why a symmetrical triangle pattern has formed. And as you can see, price has recently staged a downside breakout, but momentum seems weak and stochastic is milling about near the oversold area, so there’s a chance that the pair may be pushed back into the pattern and even break out to the upside. But if momentum builds-up, then the pair could move lower for 420 pips, based on the height of the chart pattern.
A symmetrical-ish triangle has also formed on CAD/JPY’s 1-hour time-frame, although it also looks like a bullish pennant when you zoom out to the higher time-frames. A symmetrical triangle could break in either direction, but in this case, the probability of an upside breakout is higher since the previous trend before the pair consolidated into a triangle pattern is an uptrend. And looking at our technical indicators, the moving averages have crossed-over into uptrend mode, and the 100 SMA is even acting as dynamic support. Also, stochastic is beginning to point up after having reached oversold territory.
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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.