Heads up! Double top breaking down! Euro bears seem to have found enough strength to push EUR/GBP below the neckline of the daily double top pattern, which is somewhere around the .8400 major psychological level. The chart pattern is roughly 400 pips in height, which means that the resulting breakdown could be of the same size. Make sure you review the lesson on Trading Breakouts if you plan to jump in!
Here’s another breakout situation that you wouldn’t want to miss. Kiwi traders have gotten tired of keeping NZD/USD inside its range, as the triple bottom pattern is starting to play out. The pair is already trading above the neckline around the .8100 mark and appears ready to climb all the way up to test this year’s highs around .8600. Do you think it’ll reach that area?
If you’re a fan of trend setups, then this chart is for you! EUR/JPY is climbing steadily, as a rising channel is forming on its 4-hour time frame. The pair just found resistance at the top of the channel and is stalling right around the middle. Stochastic is still moving down, suggesting that the pair could still test the channel support. A bounce from the bottom could bring EUR/JPY back to the middle or to the top of the channel near 134.00.
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.