I’m mixing it up in today’s intraday charts update, with a descending channel for AUD/USD and a Fibonacci retracement setup for GBP/JPY. Get ’em while they’re still hot, yo!
GBP/JPY plunged recently. However, the pair appears to have found support and started pulling back. And if we apply our handy Fibonacci tool, we can see that the pair is currently testing the 38.2% retracement level, which happens to line up with the area of interest 144.80. There’s therefore a good chance that resistance may form here.
However, there’s also a good chance that the pair may pull all the way back to the 61.8% retracement level, since that lines up with the major area of interest and previous support at 145.90. A strong break of 145.90 on solid bullish momentum may be a signal to bail, though.
In any case, just remember to practice proper risk management, a’ight? And if the pair does start moving back down again, then them bears will likely be gunning for 142.50 next.
Okay, gotta be real with ya, dawg. That there descending channel on AUD/USD’s 1-hour chart ain’t exactly fresh. You see, we found that there chart pattern way back on May 8. And back then, the pair was at the channel’s support area, so I told the more conservative forex trader among y’all to take a chill pill and wait for a the pair to move back up to the channel’s resistance area.
And the pair sure took its sweet time, but it finally got back to the channel’s resistance area. Y’all therefore better start lookin’ for opportunities to go shorts. And all the more so, given that stochastic is pointing back down again, which could mean that them bears are in control.
However, it’s kinda worrying that them moving averages are already in uptrend mode and all that. There’s therefore a slim chance for an upside channel breakout. As such, y’all may wanna think about bailing yo shorts if the pair moves past 0.7470. And if the pair breaches 0.7510, well, that could be signal to switch to a bullish bias since an upside channel breakout would be confirmed by then.
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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.