AUD/USD has been trending lower while inside a descending channel. And one of the more conservative ways to play a descending channel is to look for opportunities to go short near the channel’s resistance area. Unfortunately for the more conservative forex traders out there, the pair is presently milling about near the channel’s support area. But for the more gangsta traders out there who are looking to go long on the pair, just know that stochastic is already indicating oversold conditions. Do keep in mind, though, that going long here is is a counter-trend setup, so do be extra careful.
While AUD/USD is trending lower, USD/CHF is trending higher. And an ascending channel has formed as a result. It may be too late to jump in with a long, though, given that the pair has already reached the mid-channel area. However, fresh sellers seem to be trying to send the pair lower already. Moreover, stochastic has been spending time in overbought territory, which may attract more sellers. There is therefore a chance that the pair may be sent lower to test the channel’s support area once more, so you may wanna put this pair on your watchlist. As usual, though, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
Reversal alert! As y’all can see, a potential double top pattern is beginning to emerge on USD/JPY’s 1-hour chart. A double top is a bearish chart pattern. And should the pattern get validated by breaking past the neckline at 102.80, then the resulting breakout move could potentially last for about 120 pips. Looking at our technical indicators, however, we can see that stochastic is about to reach the oversold area. Also, the moving averages are in uptrend mode. There’s therefore a chance that the pair may move higher instead, so make sure to prepare for such a scenario as well.
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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.