Last Friday’s trading range or rectangle on USD/CHF’s 1-hour chart is still intact it seems. Not only that, the pair actually moved 80 pips higher and then moved over 80 pips lower since last we saw it. And since the pair is back at the rectangle’s support area at 1.0080, y’all better start looking for opportunities to go long again, especially if you plan to trade within the range. And all the more so, since stochastic is already signaling oversold conditions. Just note that the moving averages are already in downtrend mode, though. Also, the pair failed to reach the rectangle’s resistance area during the most recent swing higher. The possibility of a downside breakout is therefore also there.
Next, bulls and bears are duking it out on NZD/USD’s 1-hour time frame. Neither side has a clear advantage, though, which is a symmetrical triangle pattern has now emerged. A symmetrical triangle may break out in either direction. And should a breakout occur, then the resulting rally of selloff could potentially last for around 110 pips, based on the height of the triangle’s base. For now, however, an upside breakout seems likely, given that the moving averages are currently in uptrend mode. Stochastic, meanwhile, is moving higher and away from the oversold area.
A symmetrical triangle has also formed on AUD/USD’s chart. This one is pretty massive, however, as y’all can see on that there chart. Anyhow, should a breakout occur, then the breakout move may have enough steam for a 170-pip run. 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, alright?
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.