Is AUD/USD gonna move lower soon? Well, there’s a higher-than-average chance that the pair may move lower, given that a rising wedge pattern has now formed. A rising wedge is a bearish chart pattern, so our main directional bias is to the downside. And should a downside breakout occur, then the resulting selloff may potentially last for around 160 pips. Of course, there is always a small chance that the pair may break to the upside instead, so always make sure to practice proper risk management.
NZD/CAD has been tipping lower recently, forming that there newly-minted descending channel in the process. And presently, the pair is back at the channel’s resistance area, so y’all better start looking for opportunities to go short. Also note that the channel’s resistance area happens to line up with 0.9480, which happens to be a price area with significant market interest, even on the higher time frames. The only worrying thing is that the pair has been closing above the moving averages, since that implies that bullish interest is still strong.
AUD/JPY spurted higher before abruptly losing momentum when the pair found sellers at the 86.50 minor psychological level. The bulls ain’t ready to give up yet, though, and so the pair began trading sideways while tapering to a point. And now, what appears to be a bullish pennant has formed. A bullish pennant is, as the name says, a bullish chart pattern. We are therefore looking primarily for an upside breakout. And should an upside breakout occur, then the pair could potentially move for about 150 pips, based on the height of the pennant and its mast. Stochastic is already indicating overbought conditions, though, so there’s presently a chance that the pair may move lower instead, so do be careful.
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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.