The end is near! Well, for USD/CHF’s triangle pattern, at least. The pair is finding support at the .9850 minor psychological area, which lines up with not only the 100 and 200 SMAs on the 1-hour chart, but also a rising trend line that hasn’t been broken since early July. What’s interesting about the setup is that the uptrend is limited by a resistance around the .9900 major psychological area. Are we looking at an ascending triangle in the making? Watch this one closely if you’re into trading breakouts!
Breakout alert! After weeks of lollygagging inside a descending triangle, EUR/CAD has finally broken… to the upside. As you can see on the chart above, the pair even had a nice break-and-retest bounce from the broken trend line. Right now it’s having trouble breaking above the 1.4550 levels, which has been an area of interest since late May. Will the bulls find enough momentum to continue the pair’s uptrend? Or will the bears step in and push the pair back to the 1.4300 levels?
Remember the Fib play that we were looking at a couple of days back? Well, it looks like it played out pretty well! EUR/JPY’s consolidation on the daily chart ended up with a downside breakout and it looks like the pair is now headed for its previous lows. Not only that, but stochastic has also just left the overbought territory. A short trade at current levels could still get you a good reward-to-risk ratio especially if you aim for the previous lows and place your stops above the falling trend line. Just make sure you make enough room for yen-related volatility!
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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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