Time for a breakout? EUR/JPY has been trading sideways into what seems to be a symmetrical triangle pattern on its 1-hour chart, which means that the bulls and the bears are about tied at the moment. As a symmetrical triangle, we don’t really have a strong directional bias, but I think that the path of least resistance is to the downside since the moving averages are indicating a healthy downtrend. In any case, and a strong breakout in either direction could take place sooner or later, and if such a breakout does occur, then the potential rally or selloff may potentially last for about 240 pips since that is roughly the height of the forex chart pattern. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
As you’ve heard me say a million times, one of the most conservative ways to play an ascending channel is to look for buying opportunities near the bottom of the channel, so y’all better start looking since that’s where price is presently at. The moving averages are also indicating an uptrend, with the 100 SMA acting as dynamic support to boot, which is a real confidence booster. Stochastic is still pointing down, however, so forex traders who are bearish on the pair may not have given up just yet. In addition, price failed to test the channel’s resistance area before coming back down, which is a bit worrying since it implies strong seller interest, so make sure to prepare for a potential channel downside breakout as well.
No fancy forex chart patterns for this one. What we have here is a plain vanilla rising trend line on EUR/AUD’s 1-hour time frame. As y’all can see, price has been respecting that there trend line since the last week of January. And it just so happens that price tested the trend line and got rejected again over an hour ago, so price may be moving back up again. Looking at our technical indicators, y’all can clearly see that the moving averages are indicating an uptrend while stochastic is moving up and away from the oversold area. The only potential obstacle to further topside moves is the price area of interest at the 1.6000 major psychological level, which I highlighted above. But if price manages to push past that with sufficient and convincing momentum, then we’ll probably be in the clear for a while.
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