If riding trends is your style, then I’ve got a couple of channel setups for AUD/CAD and GBP/CHF in today’s intraday charts update that y’all may like. Check ’em out!
AUD/CAD has been trading ever higher while respecting that there ascending channel on its 1-hour chart. And presently, the pair is gunning for the channel’s support area after getting rejected at 1.0330. Y’all therefore better get ready to start lookin’ for opportunities to go long real soon.
However, there’s a chance that the pair may bounce back up again without testing the channel’s support area. After all, the pair is currently testing the area of interest at 1.0250. Moreover, stochastic is already signaling oversold conditions and all that while the 100 SMA appears to be acting as dynamic support.
Whether the pair tests the channel’s support area or bounces back up from 1.0250, just make sure to keep a close eye on how the pair reacts to resistance at 1.0330 since that’s a price area with very significant market interest, even on the higher time frames. Just zoom out to a daily chart and y’all will see what I mean.
The possibility of a downside channel breakout currently seems rather low, but keep in mind that the possibility is always there. The pair needs to clear 1.0130 before a downside channel breakout is validate, though.
Okay, gonna keep it real with ya, dawg. That there is just a potential ascending channel since the pair has to respect support at 1.2780 and move back up before the channel is validated.
Having said that, the pair IS at the potential channel’s support area, so y’all may wanna start lookin’ for opportunities to go long. Going long here when the channel hasn’t been validated yet is extra risky, though. As such, only gangsta traders should bother lookin’ for traders. More conservative traders, meanwhile, may wanna sit this one out.
Anyhow, our technical indicators be lookin’ fine, with stochastic moving back up again after reaching oversold territory. Meanwhile, them moving averages are in uptrend mode, with the 200 SMA seemingly acting as dynamic support to boot.
As usual, there’s a chance that the pair may break to the downside instead. In that case, the pair needs to smash past the 1.2700 major psychological level. In any case, just make sure to practice proper risk management, 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.