Well whaddaya know.. That double bottom formation I spotted on EUR/JPY’s weekly chart finally came to completion! Boo yeah! It’s been in the works for months now, but the pattern’s neckline has finally been broken. Y’all know what this means– chances are, the pair will continue heading higher! According to the awesome School of Pipsology, the pair may climb another 1,000 pips since the height of the double bottom formation is about 1,000 pips. But be careful because this week’s candle hasn’t closed yet! There’s still a small chance that this week’s candle may close below the neckline, giving us a fakeout instead of a breakout!
Have any of y’all seen anything so perfect? I ain’t talkin’ about my face, guys. I’m talkin’ about that perfect channel on EUR/GBP! Price has been bouncin’ around that sucker for a long time now, and it looks like it’s on its way to retest the rising support once again. They say the trend is your friend, so the odds are stacked in favor of the bulls. But then again, it can be argued that this channel has been holding for too long and that it’s due to be broken. If the rising support does break down, expect to see a sharp selloff. I’m sure the bears are already foaming at the mouth in anticipation!
Last but not least, let’s hop on over to the daily chart of USD/CHF. If you’re a fan of Fibonacci, you won’t wanna miss this sweet looking setup! After zooming to all-time lows, USD/CHF has retraced back up the charts. With a shooting star forming under the 38.2% Fib level, it’s time to short right? Not so fast playa. A better play might be to take a short at .9350, which lines up with both 50.0% Fib as well as a former support area. Besides, Stochastic ain’t in overbought territory yet, so we could see the pair climb a bit higher over the next few days.