Back on December 16, we had a Fibonacci setup for AUD/JPY and we wuz lookin’ to go long. However, I told y’all back then that all bets are off if there’s a strong break past 86.10, since that could mean a trend change. And trend change it did, since the pair moved lower for over 260 pips. Anyhow, the pair found support at 83.90 and has been steadily moving higher ever since. In the process, we got ourselves a fresh and sweet ascending channel to play with.
The pair has just hit the mid-channel area, which is close to the area of interest at 85.50. Also, stochastic is already indicating overbought conditions and all that. You catch my drift, dawg? If it ain’t clear, today’s play is to look for opportunities to go long, since there’s a chance that the pair may move lower, given the technical reasons mentioned earlier. Woah! I sound so saw-fees-tee-kay-ted! Of course, there’s also a chance that the pair may keep moving higher while gunning for the channel’s resistance area. After all, them moving averages just recently crossed-over into uptrend mode and all that. Know what I’m sayin?
Man, it’s been a long time since we last checked up on AUD/NZD, huh? On an intraday basis, I mean. Anyhow, as y’all can see on that there chart above, a descending triangle has formed on AUD/NZD’s 1-hour chart. That chart pattern is whack ‘coz a descending triangle is a bearish continuation chart pattern that usually forms at the end of a downtrend. And as y’all can see, the previous intermediate trend was an uptrend. Know what I’m sayin?
Anyhow, the chart pattern is only ’bout 60 pips tall, so the pair may potentially move for the same amount, in case of a downside break. However, there’s also a chance that the pair may break to the upside instead. After all, the chart pattern did form at the end of an uptrend and the moving averages have just crossed-over into uptrend mode. In any case, just make sure to practice proper risk management. Do you feel me, homie?
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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.