AUD/CHF has been trading ever higher while trapped inside an ascending channel. And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when price is near the channel’s support area. Unfortunately, the pair is currently closer to the channel’s resistance area, so more conservative forex traders may wanna sit this one out for now. But for the more gangsta forex traders out there, just know that stochastic is currently pointing down and moving away from overbought territory. Also, the pair is currently moving down and the channel’s resistance area is still some distance away, so going short is still a viable option for now. Again, this is a counter-trend play and is therefore more risky than usual.
Does that symmetrical-ish triangle pattern seem familiar? If it does, that’s probably because you were able to catch last Thursday’s intraday chart update. And as y’all can see, the pair broke to the downside, so give yourself a pat on the back if you were able to catch the breakout move. Anyhow, the pair is presently pulling back. So for today’s play, we’ve got a Fibonacci setup to take advantage of the pullback. All of the retracement levels line up with a price area of interest, so they’re all potential pullback areas. Stochastic will soon reach overbought territory, though, so more aggressive forex traders may want to keep a close eye on the 38.2% Fibonacci retracement level.
We’ve got another ascending channel on yet another Aussie pair. This time, we’re looking at that there ascending channel on AUD/CAD’s 1-hour chart. The pair presently seems to be getting some sellers at the mid-channel area. Also, stochastic is beginning to push away from the overbought area. There is therefore a good chance that the pair will move lower again for a potential test of the channel’s support area, so keep a close eye on this pair. And 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?
Forex Chart Settings:
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.