That there ascending channel for AUD/CAD isn’t really new because we also played it last Monday. And since the channel is still intact, why not play it again? If life gives you lemons, you go and make and lemonade, right? Anyhow, conservative forex traders may wanna sit today’s play, though, given that price is currently testing the channel’s resistance area. This thereby means that the main trade here would be to go short, but shorting is a counter trend setup and therefore extra risky. But for the more gangsta traders out there, just know that stochastic is already indicating overbought conditions. The upswing seems pretty strong, though, so you may want until that rising trend line (dashed line) is broken before going short.
The pair is currently pulling back after getting repelled at the 0.7450 minor psychological level. However, stochastic has already reached overbought territory, so sellers may start jumping in soon to try and send the pair lower again. We can take advantage of this with a Fibonacci setup. And using our handy Fibonacci tool, we can see that the most conservative pullback area to watch is the 50% Fibonacci retracement level since it also lines up rather well with 0.7590, a price area with significant market interest that has served as both resistance and support area in the past.
The last item on today’s menu is that there ascending channel for EUR/AUD. This one is special, though, since it’s also got a Fibonacci setup, as y’all can see above. Anyway, the pair is currently gunning for the channel’s support area, so y’all better get ready to start looking for opportunities to go long. However, there’s a chance that the pair ain’t gonna reach the channel’s support, given that stochastic has already reached the oversold area. And if we apply our Fibonacci tool, we can also see that price is currently milling about at the 61.8% retracement level. And said retracement level just so happens to sit right smack on 1.4780, a price area with some market interest that may serve as support. 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.