Time for a reversal on EUR/CAD? On its 1-hour forex time frame, the pair has formed an inverse head and shoulders pattern, which is a classic reversal formation. An upside break from the neckline around the 1.5250 minor psychological resistance might lead to a short-term rally. Take note that the pattern is roughly 250 pips in height, which means that the resulting uptrend could be of the same size.
If you’re more into trends, then you might find this EUR/CHF setup to your liking! The pair is moving inside a rising channel on its 4-hour time frame, reflecting a forex uptrend. At the moment, it is finding a bit of resistance at the middle of the channel with stochastic in the overbought zone. Further gains could take the pair to the channel resistance near 1.2250 while a selloff could last until the channel support at 1.2150.
Here’s another potential reversal play, this time for the comdoll traders out there. AUD/NZD has formed a double bottom pattern on its daily time frame, suggesting that a long-term rally might be in the cards. Of course the currency pair still needs to break above the formation neckline around the 1.0900 major psychological level before confirming the uptrend, which could last by as much as 400 pips.
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.