The Australian dollar was beaten down throughout today’s session, but for you Aussie bulls out there, this could be an opportunity to hop in at a better price. And on the one hour chart above, we can see potential for a return to the uptrend in AUD/CHF, which has been channeling higher since mid-September. With the market now testing the bottom of the channel and stochastic signaling potentially oversold conditions, odds are that we’ll see some bulls test this area and support is likely to form in the short-term.
NZD/CHF has been in a sideways price pattern going back to mid-June, moving back and forth between .6900 to .7200. The market recently tested the .7200 area once again and it was a no-go for the bulls for an upside breakout. Short-term we saw minor support on its way back to the downside around .7075, and it looks like this retest we’re seeing today may have the momentum to break that. The moving average crossover to the downside may even draw in some sellers as well. Even with the longer-term reversal already in motion, there’s still enough room to the bottom of the range for good reward-to-risk potential.
Got a consolidation-breakout forming on EUR/CAD, making this bounce higher in the longer-term trend a nice setup for some short-term pips. This rising wedge pattern tends to lead to breakouts, and with bearish divergence forming (high price ‘highs’, lower stochastic ‘highs’), odds are increasing in favor for a downside break. Some support may form around the moving averages, but once that breaks, sellers are likely to be on any momentum behavior to the downside.
Forex Chart Settings:
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.
These are some of our favorite trading books, and BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!