Bulls and bears have been fighing it out on AUD/CAD’s 1-hour chart, but neither side is really winning. As such, price action on the pair has recently been consolidating while tapering into a point. And in the process, a symmetrical-ish triangle pattern has formed, as y’all can see on that there chart. A symmetrical-ish triangle could break in either direction. And should a breakout occur sooner or later, then the resulting rally or selloff could potentially last for around 200 pips, based on the height of the pattern.
Just note that for an upside breakout, the pair needs to clear blast through the 1.0250 minor psychological level. For a downside breakout, meanwhile, the pair needs to clear 1.0080 on solid momentum. If the pair begins to hesitate when approaching the aforementioned levels, then there’s a chance that the breakout may end up being a fakeout, so y’all can’t chillax until the pair clears them levels. You get my drift, dawg?
If breakouts ain’t your thing, then perhaps you’ll like that there ascending channel for CHF/JPY. We actually had a symmetrical-ish triangle for CHF/JPY back on March 8. The pair did break to the topside, but momentum got sapped when the pair reached 113.70. However, them bulls ain’t ready to give up on the pair just yet. So, taking the most recent price action into account, we get that there ascending channel. And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long near the channel’s support area.
Unfortunately, the pair is currently at the channel’s resistance area, so more conservative forex traders may wanna sit this one out for now. But for the more gangsta traders out there, don’t jump in right away, since stochastic is already signaling oversold conditions and all that, so there’s a chance that the pair may even stage an upside breakout at this point. Instead, gangsta traders may wanna wait until 113.70 is smashed on strong bearish momentum. Oh, also note that there’s a small possibility that them bears will use 113.70 as a diving board for a downside channel breakout. The pair needs to clear 112.30 before the breakout is validated, though.
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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.