Remember that USD/JPY ascending triangle pattern I showed y’all last week? Well, the pair just broke above the triangle resistance and could be in for more gains! Before that happens, price could still pull back to the broken triangle resistance just above the 120.00 major psychological level before heading any higher. Stochastic is pointing down anyway, indicating that sellers are in control of price action for now and that USD/JPY might resume its climb once the oscillator turns from the oversold region. Take note that the forex chart pattern is roughly 300 pips in height, which means that the resulting rally could be of the same size.
A breakout for USD/CAD, finally! After trading inside a descending triangle pattern for quite some time, the pair decided to push past the resistance around the 1.2500 handle and go for more gains. This particular triangle is around 400 pips high so the longer-term rally could last by that amount as well. Stochastic is heading lower though, which means that a quick correction might take place before USD/CAD goes any higher. In that case, the pair could find support at the broken triangle resistance at the 1.2500 major psychological level.
Here’s a descending triangle pattern that’s just forming on EUR/CHF’s 1-hour forex chart. The pair seems to have bounced off the triangle support at the 1.0650 minor psychological level already and may be headed for the top near the 1.0700 major psychological mark. Stochastic is pointing down, which suggests that price might make another test of the triangle support soon. If sellers stay on top of their game, a downside break might even be possible and lead to approximately 200 pips in losses, which is the same height as the chart pattern.
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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.