Is AUD/CAD getting ready for some downside moves? Well, it looks there’s a higher-than-average chance that the pair could go lower. After all, a rising wedge pattern has now emerged on AUD/CAD’s 1-hour chart. And if a breakout to the downside does occur sooner or later, then the pair could potentially mover lower for about 140 pips. Do note, however, that stochastic is already signaling oversold conditions. Moreover, the moving averages are still indicating an uptrend. There is therefore also a chance that the pair may break higher instead.
After surging higher, NZD/CAD began consolidating tightly when it found fresh sellers at the 0.9820 handle. In the process, what appears to be a bullish pennant has formed. As the name suggests, a bullish pennant is a bullish forex chart pattern, so our main directional bias is to the upside. Looking at our technical indicators, we can also see that the moving averages are in uptrend mode while stochastic is leaving the oversold area, which supports our upside bias. And if the pair does start moving higher again, then the pair may move higher for about 250 pips, based on the height of the pattern and its mast or pole.
If breakout plays ain’t your thing, then check out that there descending channel for GBP/CHF. And y’all better start looking for opportunities to go short, since the pair is currently milling about near the channel’s resistance area. It’s kinda worrying that stochastic is about to reach oversold territory, though, since that may attract buyers who are on the sidelines. All the more so since the moving averages have just recently crossed-over into uptrend mode.
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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.