Yo! Back on February 23, we had an ascending channel for CAD/CHF, which y’all can still see on that there chart. And back then, we had two scenario on the pair. The first was an upside continuation while the second was a downside channel breakout, since 0.7700 was apparently acting as resistance. And as y’all can see, our second scenario played out, yielding us about 90 pips. Aww, yea!
Anyhow, we’re still bearish on the pair. But if we take the most recent price action into consideration, we can see that there’s a potential descending channel that’s forming. I say “potential” because the pair has to move back up first before the channel can be confirmed. But to those of y’all who are gangsta enough, just know that stochastic is already indicating oversold conditions and all that. There’s therefore a chance that the pair may climb higher. Y’all better start lookin’ for opportunities to go long. The more conservative forex traders out there may wanna sit this one out until the pair reaches the channel’s resistance area or resistance at 0.7630 forms, though. After all, going long at the bottom of a descending channel, and a potential descending channel at that, is extra risky. Just be ready to bail yo shorts or add to yo longs if the pair blasts through 0.7700, a’ight?
AUD/USD has been steadily grinding higher while bouncing up and down inside an ascending channel, as y’all can see. And presently, the pair is close to the channel’s support area. Moreover, stochastic is signaling oversold conditions and all that. Y’all therefore better start lookin’ for opportunities to go long on the pair.
Do note, however, that the pair seems to have difficulty moving past resistance at the 0.7700 major psychological level. There’s therefore also a chance that the pair may stage a downside breakout instead. And if a downside breakout does occur, then the pair needs to smash past the 0.7620 handle. Otherwise, there’s a chance that them bulls may stage a counter-attack. Know what I’m sayin? Anyhow, just remember to practice proper risk management and all that, a’ight?
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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.