In today’s intraday forex charts update, we’re gonna be revisiting all of our setups from last Thursday. Let’s start with that there ascending channel for EUR/GBP, shall we? And as y’all can see, the pair climbed over 120 pips and then dipped for 90 pips since we last saw it. And since the pair is back at the channel’s support area, why not play it again, right? It’s also good hat the 100 SMA may be acting as dynamic support again, since it reinforces the technical argument for support to form. Meanwhile, stochastic is already indicating oversold conditions, so bulls may soon be enticed to start coming in.
Last Thursday, I told the breakout artists among you to put EUR/CAD on your watchlist since a falling wedge has formed. A falling wedge is a bullish pattern, and it just so happens that the pair broke to the topside for over 200 pip, so go ahead and congratulate yourself if you were able to ride the move. Incidentally, the breakout move was the final step that validated a newly-minted ascending channel. And for today’s setup, we’re looking to play that new new channel. Looking at the chart, price is already hesitating just above the mid-channel area, so if it dips lower, then we may get a chance to jump in with a long. But for the more gangsta traders out there, just know that stochastic is presently close to the oversold area, so the pair may still have enough steam to gun for the channel’s resistance area.
The descending channel on EUR/CHF is still intact. However, the pair has yet to move higher. And it seems like the pair is hesitating because it doesn’t want to climb back above that there broken rising trend line. However, the bulls have also set up a defensive position at the 1.0880 handle (dashed horizontal line). Given the apparent hesitation, price could go either way here. Stochastic is indicating oversold conditions, though, so an upside move is more probable for now. In any case, 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.