Remember that USD/JPY double top pattern I showed y’all before? Well, it looks like the pair already broke below the formation’s neckline, confirming the potential forex downtrend. Price has just pulled back up to the broken support area, which lines up with the 50% Fibonacci retracement level, for a quick retest before possibly resuming its drop. Stochastic is pointing up, indicating that buyers are in control of price action for now, with a return of selling pressure likely to push USD/JPY to the previous lows near 118.00 or lower.
Now here’s a forex reversal pattern that’s just forming! AUD/USD appears to be making a double bottom on its 1-hour time frame, which suggests that the recent downtrend is about to turn. Price has yet to break past the neckline of the pattern around the .8150 minor psychological resistance before confirming the potential reversal. If that happens, the pair could be in for at least a hundred pips in gains, which is the same height as the formation. Stochastic is headed north, which means that Aussie bulls are in control of price action for now.
After making a shallow retracement on its previous rally, USD/CAD seems to be making another quick pullback on its 1-hour forex chart. Price recently broke past the 1.1800 major psychological resistance and zoomed up to a high of 1.1873 before retreating back to the area of interest. This lines up with the 50% Fibonacci retracement level, which might act as support and push price back to its previous highs and beyond. Stochastic has already reached the oversold area, which means that sellers are exhausted and that buyers might be looking to jump in soon.
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.