We’ve been checking up on our old setups for the past couple of days, so let’s mix it up a bit with a couple of fresh, short-term setups, with EUR/CHF and GBP/AUD in focus. Check out what I’ve got, yo!
EUR/CHF has been consolidating lately while slowly tapering to a point, as y’all can see on that there chart. And in the process, a symmetrical-ish triangle has formed for us to play with.
A symmetrical-ish triangle could break out either to the upside or the downside. As such, we don’t really have a directional bias on the pair. Know what I’m sayin?
Anyhow, if a breakout does occur, then the pair may likely have enough juice for a 100-pip move, based on the height of the chart pattern.
Just note that a downside breakout needs to smash past 1.0870 in order for the breakout to be validated.
Otherwise, there’s a good chance that the breakout may end up as a fakeout. An upside breakout, meanwhile, needs to clear 1.0970 before the breakout is confirmed. In any case, just make sure to practice proper risk management, a’ight?
GBP/AUD has been trading ever lower recently. And if we connect the most recent peaks and troughs, we get that there fresh 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.
And lucky us since that’s where the pair is currently at. Y’all therefore better start lookin’ for opportunities to go short.
And all the more so, given that the the pair is about to test the area of interest at the 1.7350 minor psychological level.
Looking at our technical indicators, they also seem to support further moves to the downside.
Stochastic, for one, is already signaling overbought conditions and all that.Them moving averages, meanwhile, are already in downtrend mode.
It even looks like as if the 200 SMA is acting as dynamic resistance.
Anyhow, if the pair does start going back down, then them bulls will likely be gunning for 1.7090.
Do note, however, that there’s always a chance for an upside channel breakout.
So if 1.7350 fails to hold as resistance, then bulls will likely be shooting for 1.7630 next.
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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.