Up first in today’s intraday forex charts update is that there symmetrical-ish triangle for CHF/JPY. A symmetrical-ish triangle means that bulls and bears are playing a game of tug-of-war, but neither side has a real advantage. As such, the pair is just as likely to break to the upside as to the downside. And if a breakout does occur, then the resulting rally or selloff could potentially last for around 160 pips, based on the height of the chart pattern. Presently, however, a downside move seems more probable since stochastic is already indicating overbought conditions while the moving averages are in downtrend mode.
Is AUD/USD in for more downside moves? Well, there’s a better-than-average chance that the pair could break lower, given that a rising wedge has now emerged on the pair’s 1-hour chart. A downside breakout could potentially last for around 120 pips, based on the chart patterns height. However, do note that stochastic is pushing away from oversold territory while the moving averages are still indicating a healthy uptrend. There’s therefore also a chance that the pair would break higher instead. Oh, also note that I found a longer-term symmetrical triangle for the pair in today’s Daily Chart Art.
For the last item on today’s update, we’re looking at that there descending channel for NZD/CHF. Unfortunately for trend traders, the pair is presently near the channel’s support area. But for the aggressive traders out there who don’t mind playing a counter-trend setup, just know that the pair seems to be trying to break lower past support at the 0.7050 minor psychological level. If the said level holds as support, then the pair could potentially move higher, especially since stochastic is already signalling oversold conditions.
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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.