Reversal alert! EUR/CAD has been having difficulty in smashing past support at 1.4380, so much so that a possible double bottom is now forming. And if the pattern is validated via an upside break past the neckline at 1.4490, then the resulting rally may last for about 110 pips, based on the height of the pattern. Do note, however, that stochastic is has already reached overbought territory, so there’s a chance that the pattern may get invalidated and the pair could go back down instead. Also, the moving averages have just recently crossed-over into downtrend mode.
GBP/NZD has been steadily grinding higher while trapped inside a relatively tight ascending channel. However, the pair is also approaching broken support at the 1.0550 minor psychological level (dashed line), which therefore gives us two main scenarios. The first scenario is that the pair will respect the channel and keep trending higher. The second scenario, of course, is that the broken support at 1.0550 would become resistance and the pair gets sent lower, maybe even invalidate the channel in the process. Whichever scenario you favor, just make sure to practice proper risk management, okay?
An ascending triangle has formed on GBP/NZD’s 1-hour chart, which is kinda weird since an ascending triangle is a bullish forex chart pattern that usually forms during an uptrend. Our main directional bias is to the upside, but since the chart pattern formed in a downtrend, a downside breakout is also possible, so plan accordingly. Anyhow, a breakout in either direction could potentially last for about 240 pips, based on the height of the triangle.
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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.
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