Yo! Let’s start this week’s intraday charts update with an Aussie + channel pattern double special, with a descending channel for AUD/NZD and an ascending channel for EUR/AUD.
As y’all can see, AUD/NZD has been trending lower while trapped inside that there descending channel.
And as I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is close to the channel’s resistance area.
Well, check out where the pair is currently at. That’s right! Y’all therefore better start lookin’ for opportunities to go short. And all the more so, given that stochastic is already pointing down after reaching overbought territory. In addition, the 200 SMA seems to be acting as dynamic resistance.
We’ve also got a channel on EUR/AUD’s 1-hour chart. This time, however, we’ve got us an ascending channel.
The more conservative play is to look for opportunities to go long when the pair is at the channel’s support area. But as y’all can see, the pair is currently at the channel’s resistance area, so more conservative forex traders may wanna put this pair on a watchlist and wait for the pair to move back down.
And for the more gangsta traders out there who may be thinkin’ about going short, just be extra careful and make sure to practice proper risk management, since stochastic is about to reach oversold territory already. This means that there’s currently a chance that more bulls will start to come in and push pair higher for an upside channel breakout.
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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.