Let’s begin with that there descending channel on EUR/USD’s 1-hour chart. And as y’all can see, the pair currently seems to be moving higher in an attempt to test the channel’s resistance area. However, it also looks like the pair is having a hard time getting past the broken support at 1.0990. Moreover, stochastic is already indicating oversold conditions, so there’s a chance that the pair may start moving back down without ever touching the channel’s resistance area.
Next, we’ve got a symmetrical triangle for EUR/GBP. A symmetrical triangle means that the bulls and the bears are duking it out, but neither side has a clear advantage over the other, so a breakout may occur in either direction. However, the bulls temporarily gained the upper hand, which caused a breakout, but the bears weren’t having any of it, so the pair was pulled back into the triangle and the breakout turned out to be a fakeout. This implies that the bulls don’t have enough “oomph” for a proper breakout, which skews probability in favor of a downside breakout. Also, stochastic is already signalling overbought conditions, which reinforces a downside breakout bias. In any case, the base of the triangle is about 200 pips tall, so a breakout in either direction could potentially last for the same amount.
Finally, EUR/AUD has been trading sideways while apparently respecting resistance at 1.4770 and support at 1.4660, thereby giving us a nifty 110-pip trading range or rectangle pattern to play with. If you plan to trade within the range, just know that price has already reached the halfway mark while stochastic has just reached overbought territory, so buying now may be a bit risky. The moving averages are now in uptrend mode, though, so the pair could still go higher. 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.