Sound the alarms, we’ve got an evening star formation on USD/CAD! As you all know, this pattern can usually be found at the end of a trend. In other words, a major reversal could be in the works! With Stochastic indicating deeply overbought conditions, USD/CAD looks like it may experience a bit of selling pressure in the coming days. If you wanna take your chances with a short position, keep in mind that the 1.0050 handle was once a formidable resistance area and may act as support in the future.
If breakout plays tickle your fancy, GBP/USD’s got just the thing for you! It has formed a sweet little rising wedge the past couple of days, and it seems like it may break any moment. Since the chart pattern formed after a downtrend, the tendency is for it to break to the downside. But with forex, there’s no such thing as a “sure thing,” so be on the lookout for a possible upside breakout as well!
This chart on USD/JPY shows just how beastly the yen has been over the past two months. Momentum is clearly siding with yen bulls, homies! If you want to jump on the bandwagon, you may get a chance to do so if and when price retests the falling trend line. Just be sure to wait for confirmation from Japanese candlesticks or Stochastic before you make your move!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.