CHF/JPY has been slightly trading higher while bouncing up and down inside an ascending channel. One of the more conservative ways to play an ascending channel is to look for opportunities to go long near the channel’s support area. The pair is currently testing the channel’s resistance area, though, so more conservative forex traders may wanna sit this one out for now. But for the more aggressive traders out there, just know that stochastic is already signalling overbought conditions, so there’s a chance that the pair may start moving lower again to test the channel’s support area..
As y’all can see on the chart above, AUD/CAD has been grudgingly moving lower while forming a descending channel. Price is currently close to the channel’s resistance area and stochastic just recently moved away from overbought territory, so the bears may be taking over soon to push the pair lower. However, the moving averages are presently in uptrend mode, so there’s also a chance that the pair could stage an upside breakout instead, so just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
What appears to be an ascending triangle has formed on CAD/JPY’s 1-hour chart. An ascending triangle is a bullish chart pattern, but since this particular ascending triangle formed at the end of a downtrend, a break to the downside is also possible. In any case, a breakout move could potentially last for around 200 pips, based on the height of the chart pattern.
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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.