That there is updated chart for the ascending channel on AUD/CHF’s 1-hour that we’ve been playing since February 13. And since we last checked up on it, the pair went up for 80+ pips then back down for 100+ pips, before finally climbing higher for another 80+ pips. So congratulate yo self if you’ve been playing this channel. You’ve got game and some bank, dawg! Aww, yeah!
I mentioned earlier that the pair has already moved back up for 80+ pips. However, the pair has been sticking close to the channel’s support area. This could mean two things. The first is that now’s the time to start lookin’ for an opportunity to go long, since the pair may be moving back up soon. The second is that the pair is sticking to the channel’s support area because them bears are trying their best to stage a downside breakout.
Looking at our technical indicators, the moving averages are still in uptrend mode. In addition, the 200 SMA has been acting as dynamic support. Them moving averages therefore appear to favor the upside scenario. Stochastic, however, supports a downside move, since it’s already indicating overbought conditions and all that. Anyhow, just make sure to keep an eye on how the pair reacts to 0.7760 for the upside scenario. For the downside scenario, the pair needs to cleanly clear 0.7630 for the downside breakout to be confirmed.
Yo! Sound the reversal alert! As y’all can see on that there chart, a rising wedge pattern appears to have formed on AUD/NZD’s 1-hour chart. A rising wedge pattern is a bearish chart pattern, so our main directional bias is to the downside. And from the looks of it, them moving averages are already moving closer together for a potential cross-over into downtrend mode. Stochastic, meanwhile, is pointing lower after pushing away from overbought territory, which could mean that them bears are taking control. Moreover, the pair is approaching the 1.0750 minor psychological level, which is a price area with very significant market interest, even on the higher time frames. Just switch to a daily or weekly chart, and y’all can see for yo selves.
Should a downside breakout occur, then the pair may have enough steam for a 70-pip move. Just keep an eye on how the pair reacts to 1.0640, a’ight? And just make sure to practice proper risk management. Also, you may wanna consider bailing out or switching direction bias of the pair opts to blast past 1.0750 with great momentum instead.
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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.