Sup? Just ‘coz it’s a new year don’t mean we’ll start this year’s intraday charts update with a fresh set. If life gives ya lemons, then you go and make some phat lemon-colored threads or kicks. Know what I’m sayin? What? You thought I was gonna say lemonade? Puh-leeze! Only them kids make lemonade, dawg.
Where was I? Oh, right. For today’s play, we be checking up on our old setup for AUD/USD. And this setup is really ancient (by intraday standards), yo! Anyhow, we first identified that there rising wedge on AUD/USD’s 1-hour chart back on December 14 (told y’all it was ancient). And as y’all can see, it broke lower for over 340 pips. Now that’s da bomb! We also had a Fibonacci retracement setup back on December 15, but that was a dud, since there was no pullback.
Anyhow, da pair be consolidating again. This time, what looks to be a descending triangle has formed. A descending triangle is a bearish pattern, so we be lookin’ for some downside moves. And if a downside breakout does occur, then da pair could potentially move lower for about a hundred pips. Of course, there’s always a chance that da pair may break to da topside instead, so y’all better prepare for such a scenario as well.
That there is a brand-spankin’ new descending channel for NZD/USD. Previously (back on December 12), we had an ascending channel on da pair, and we wuz lookin’ to short at 0.7220 while gunning for da 0.7120 handle. Well, we did manage to get a ride at 0.7220, but da pair obviously went a whole lot lower than that, breakin’ da ascending channel in da process. If you were able to ride da pair past 0.7120, then I have to hand it to ya. You got game, dawg.
Anyhow, takin’ da most recent price action into account, we can see that da pair has formed that there descending channel. Currently, da pair is milling about near da channel’s support area, so y’all better start looking for opportunities to go long. And all da more so, given that stochastic be, like, oversold and … stuff. More conservative traders may wanna sit on da sidelines, though, since goin’ long near a descending channel’s support area is a counter-trend setup. This therefore means that there’s a bit more risk involved. Know what I’m sayin?
But for da more gangsta traders out there, just know that da moving averages have just crossed-over into uptrend mode, which further supports a potential upside move. Just keep an eye on how price reacts to 0.6980, since that’s a price area with significant market interest, so bears may be lurking there, ready to gank ya (them bears may have paws, but they can gank ya good). Also, get ready to bail out if da pair moves lower past 0.6900, since that could mean that da downtrend is accelerating. And as always, just make sure to practice proper risk management and all that. Nuff said. I’m out!
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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.