Let’s start this week’s intraday charts update with a couple of potential short-term channel setups for AUD/JPY and AUD/USD. Check out what I’ve got, yo!
AUD/JPY has recently been making higher peaks and higher troughs recently. And if we connect them peaks and troughs, we get us a potential ascending channel, as y’all can see.
I say “potential” because the would-be channel’s support area needs to hold. In addition, the pair needs to move back up again before the channel is confirmed. As such, even conservative traders have to be extra careful when going long on the pair, even though the pair is currently at the potential channel’s support area.
Stochastic is already signaling oversold conditions and all that, though. There’s therefore a good chance that bulls may start jumping in soon in order to send the pair higher and validate the pattern.
We’ve also got another potential channel chart pattern. This time, however, we’re lookin’ at a potential descending channel wherein the pair needs to move higher in order to validate the pattern.
More conservative traders may wanna stay out of this one for now, though. After all, the pair is currently at the potential descending channel’s support area, and going long here is a counter-trend play.
But for the more gangsta traders out there who are planning to look for opportunities to go long, just remember 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.