Remember that neat USD/JPY triangle pattern I showed y’all yesterday? The pair just made a strong upside breakout after spiking down to test the triangle support near the 100 SMA. This suggests that buyers are pumped up and that the pair could be in for more gains, possibly around 150 pips or the same height as the chart formation. The 100 SMA is above the longer-term 200 SMA anyway, which means that bullish momentum is building up. Before USD/JPY heads further north, it might still pull back to the broken triangle resistance around the 124.50 minor psychological level since stochastic is already indicating overbought conditions.
Fancy longer-term moves? Feast your eyes on this breakout move on AUD/CAD’s daily forex chart! After consolidating inside a descending triangle since the start of this year, the pair finally picked a direction and made strong upside break past the top of the triangle and the moving averages. Note that the chart pattern is approximately 900 pips tall so the resulting uptrend could last pretty long, possibly taking AUD/CAD past this year’s highs around the 1.0350 mark. Be on the lookout for potential retracements to the broken triangle resistance since stochastic is nearing the overbought region, hinting that Aussie bulls might need to take a break soon.
This one’s getting pretty tight yo! GBP/USD has been consolidating inside an ascending triangle pattern on its 1-hour forex chart, as pound traders are biting their nails ahead of the top-tier events in the U.K. today. A breakout could go either way, with the resulting move likely to last by around 300 pips or the same size as the triangle pattern. The moving averages aren’t giving good clues at the moment since they’re crossing back and forth while stochastic is hinting that a move lower might be likely. If you’re hoping to catch a big move, you could try a straddle setup for this one but keep in mind that this pair is prone to volatile moves and might make huge spikes before establishing a clear direction.
Forex Chart Settings:
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.