Whether you’re a trend rider, a breakout chartist, or a pullback hunter, I’ve got what you need, dawg. In today’s intraday charts update, I’ve got a channel pattern for EUR/AUD and a Fibonacci retracement setup for USD/CHF, although I’ve also got a potential flag on USD/CHF as well, so I’ve got breakout chartists covered.
If finding and then riding trends is your thing, then check out that sweet uptrend on EUR/AUD’s 1-hour chart. As y’all can see, the pair has been trading ever higher while trapped inside that there ascending channel.
And lucky us, since the pair is currently at the channel’s support area. Y’all therefore better start lookin’ for opportunities to go long. And all the more so, given that stochastic is already indicating oversold conditions and all that while the 200 SMA appears to be acting as dynamic support.
Just keep an eye on how the pair reacts to 1.4870, though, since that is a significant area of interest, even on the higher time frames. Just switch to a daily or 4-hour chart and y’all see. Also, there’s always a slim chance for a downside breakout, so y’all may wanna bail yo longs or switch bias should the pair smash past 1.4600 on strong bearish momentum.
As y’all can see, USD/CHF recently staged an upside breakout from that there descending channel. However, the pair appears to be hesitating at 1.0090 and has began trading sideways. This gives us two trading opportunities.
The first scenario is that a bullish flag is forming, so breakout chartists out there better listen up. A bullish flag is a bullish chart pattern, so we’re looking for further moves to the upside. And should the flag be validated by a strong topside breakout past 1.0090, then the pair may have enough steam for a 220-pip move, based on the height of the flag and its pole.
For the second scenario, we’re waiting for a potential pullback. And just in case there’s gonna be a pullback, we’re gonna use our handy Fibonacci tool to look for potential pullback areas.
All Fibonacci retracement levels are valid pullback areas, but the area to keep a close eye on appear to be the 38.2% and 50% retracement levels since they line up rather nicely with the areas of interest at 1.0000 and 0.9970 respectively.
Whichever scenario plays out, just make sure to remember to always practice proper risk management, a’ight? Peace!
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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.