Time for a USD/JPY breakout? This pair has formed higher lows and found resistance around the 120.00 major psychological level, creating an ascending triangle pattern on its 1-hour forex chart. Price is now testing the top of the formation, still deciding whether to bounce back to the triangle support or to make an upside break. Stochastic is moving down, suggesting that USD/JPY might stay inside the triangle for now. Just make sure you watch out for signs of a breakout, as the resulting move might last by around 300 pips, which is the same height as the triangle pattern.
Check out this neat break-and-retest setup on GBP/NZD’s 1-hour forex chart! After breaking below support around the 2.0400 major psychological level, the pair dipped close to the 2.0000 handle before pulling back up. Price is now testing the broken support area, which lines up with the 50% Fibonacci retracement level and is holding as resistance. Stochastic is heading lower, which means that the pair could also move south from here. In that case, GBP/NZD could test its previous lows or even create new ones below the 2.0000 mark if sellers are strong enough.
Remember that GBP/AUD descending triangle pattern I showed y’all the other day? Well, price just made a strong break below support, indicating that further losses are in the cards. Before that happens though, the pair seems to be making a retest of the broken support level, which lines up with the 38.2% Fib and the .9600 major psychological mark. Stochastic is pointing down, which means that pound bears might take control soon and push price back to its previous lows at 1.9500 or lower. If a larger pullback takes place, GBP/AUD might still be able to test the triangle resistance near the 1.9700 handle and 61.8% Fib.
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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.