Up first is that there potential double top on the 1-hour forex chart for CHF/JPY. Price tried to break past resistance around the 118.60 handle twice, but failed on both occasions, forming that there forex chart pattern. If forex traders bullish on the pair fail to push price further up, and the bears manage to take control and kick price back down to the neckline at the 117.80 handle, then we got us a confirmed double top. And if bearish momentum is enough to break past the neckline, then price could move for around 80 pips since that is roughly the height of the chart pattern. Also, the moving averages are currently indicating a healthy downtrend, with the 100 SMA acting as dynamic resistance.
The bearish pennant we found on NZD/CHF’s 1-hour time frame back on Wednesday didn’t go as smoothly as we anticipated, but it went in our direction and is currently down 90 pips from the breakout point, so give yourself a pat on the back if you were able to ride the down move. Anyhow, the pair’s rough price action has created what appears to be a descending channel, with price currently at the mid-channel area. More conservative forex traders should probably avoid this setup and wait for price to test the channel’s resistance area, though, since stochastic is just about to reach oversold territory.
Lastly, we have that there potential inverse head-and-shoulders pattern for AUD/CHF, so sound the reversal alert. If the neckline at 0.7050 is broken with sufficient and convincing momentum, then the forex chart pattern will be validated and may move for around 100 pips since that is the height between the pattern’s head and its neckline. Be wary, however, since the moving averages have just recently crossed-over into downtrend mode, so some Aussie bears may be inclined to jump in. Also, stochastic is currently pointing down and moving away from the overbought region, so sellers may still be control. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
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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