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In today’s intraday charts update, we’ll be taking a stroll down memory lane as we check up on our old setups on AUD/USD and GBP/CAD. Of course, it goes without saying that we’ll be lookin’ for fresh plays as well.

GBP/CAD: 1-Hour

GBP/CAD: 1-Hour Forex Chart
GBP/CAD: 1-Hour Forex Chart

The last time we took a look at GBP/CAD was way back on December 12. And back then, we identified a rather large symmetrical triangle, which y’all can still see on that there chart.

And since then, the pair broke lower to the downside, hesitated a bit at 1.6920, but found selling pressure at 1.7000 and later broke lower past 1.6920. So if you were able to catch that move, then congratulations on bagging some pips. Aww, yeah!

Anyhow, if we connect the  most recent peaks and troughs, we can see that a fresh descending channel has formed for us to play with.

And presently, the pair is making its ways higher towards the channel’s resistance area, which should be somewhere just below 1.6920. Y’all therefore better start lookin’ for opportunities to go short on the pair.

As usual, however, there’s always a risk for an upside channel breakout, so just be ready to bail yo shorts or even switch to a bullish bias if the pair moves higher and clears 1.7000.

AUD/USD: 1-Hour

AUD/USD: 1-Hour Forex Chart
AUD/USD: 1-Hour Forex Chart

If y’all can still recall, we found a symmetrical triangle pattern on AUD/USD’s 1-hour chart way back on December 20.

Well, check that out, dawg. That’s right! The pair took our the key area of interest at 0.7690 that I told y’all to keep an eye on, before moving higher for 180 pips to 0.7870. And if you were able to catch that upswing, then give yo self a pat on the back for banking some delicious pips. Aww, yeah!

Anyhow, resistance at 0.7870 seems rather strong so the pair has been pulling back. And presently the pair is testing the area of interest at 0.7810.

Is there a chance that support will form at 0.7810? Well, there’s appears to be a higher-than-average chance, given that stochastic is already signaling oversold conditions and all that.

However, if we apply our handy Fibonacci retracement tool , we can see that there’s a risk that the correction may be deeper. To be more specific, there’s a chance that the pair may pull all the way back to either the 38.2% retracement level at 0.7790 or the 50% retracement level just above 0.7760.

And while we’re still bullish on the pair, if the pair keeps moving lower past 0.7760, then that may be a sign that the trend is turning bearish, so y’all may wanna bail yo longs if you still have ’em.

In any case, just make sure to practice proper risk management as always, a’ight?

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line