If you get a sense of déjà vu when looking at that there ascending channel, that’s probably because you can still remember last Wednesday’s intraday charts update. Anyhow, the pair did move higher from last we saw it, so give yourself a pat on the back if you were able to ride it. For today’s play, we’re looking to play the channel again. This time, however, we’re looking for opportunities to go short, given that the pair is presently testing the channel’s resistance area and because stochastic has already reached overbought territory. Shorting here would be going against the trend, though, so more conservative forex traders may wanna sit this one out.
Is CAD/JPY in for more upside moves? Well, there’s appears to be a higher-than-average chance that the pair may be going up sooner or later, given that a falling wedge pattern has now emerged. And if the pair does break to the upside, then the resulting rally could potentially last for around 170 pips, based on the height of the pattern. Of course, there’s always a possibility that the pair would break lower instead, so make sure to always practice proper risk management should you find a trade based on this or any of the other charts, alright?
After spurting higher with great momentum, AUD/CHF’s rally very quickly lost steam when it reached the 0.7410 handle (dashed horizontal line). The bulls aren’t quite ready to give up yet, though, so the pair promptly began trading sideways, forming what appears to be a bullish flag pattern in the process. Our directional bias is, as the name of the pattern implies, to the upside. And if an upside breakout does occur, then the resulting move may last for about 160 pips. However, the 0.7410 handle is a price area with significant market interest, even on the higher time frames. There is therefore a possibility that 0.7410 will hold as resistance and that the pair could be sent lower instead.
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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.