Time for a breakout? CAD/CHF has been consolidating inside a symmetrical(ish) triangle pattern on its 1-hour forex chart, which means that the bulls and the bears are playing a tug-o-war at the moment. As a symmetrical(ish) triangle, a strong breakout in either direction could take place sooner or later, with the potential rally or selloff lasting by about 150 pips since that is roughly the height of the forex chart pattern. Stochastic is moving higher, indicating that bulls are in control of price action for now. The moving averages are also indicating that the downtrend is still intact, with the 200 SMA acting as resistance.
Are ya on the hunt for a continuation forex chart pattern? Well, you’re in luck since an ascending triangle has formed on the 1-hour forex chart for CAD/JPY. Technically, the overall trend is still down but price began consolidating at the end of a minor uptrend, so we’re looking at the continuation of the minor uptrend. If a breakout does occur, forex trader can expect price to go up by around a hundred pips since that is roughly the height of the triangle. Be careful, though, since resistance at the 97.00 major psychological level seems rather strong. Also, stochastic is currently pointing down, so the bears may still be control for now and a downside breakout may potentially happen.
Looks like NZD/CAD has been respecting a rising trend line on its 1-hour time frame. The pair is currently testing the the trendline, but support seems to be holding well. Since it’s a rising trend line, out directional bias is therefore to the upside. For trend confirmation, the 100 SMA is still above the 200 SMA, and the 200 SMA is acting as dynamic support to boot. In addition, the stochastic oscillator is currently near the oversold region but it is pointing up, so forex traders who are bullish on the pair may be taking control soon. The only worrying thing is that there is a regular bearish divergence between stochastic and price action, so it’s possible that the bears may be attempting a trend line break to the downside.
As usual, make sure to practice proper risk management should you find a trade based on any of these charts.
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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.