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Welcome to a new set of Chart Art, brothas!

We’re all about the comdolls today as we look at a potential breakout on AUD/NZD and a reversal pattern on GBP/CAD.

Get ’em while they’re hot!

AUD/NZD: 4-hour

AUD/NZD 4-Hour Forex Chart
AUD/NZD 4-Hour Forex Chart

Breakout alert! AUD/NZD just broke above a descending channel resistance that had held since mid-May.

Are we looking at a legit breakout or a fakeout? The 1.0750 is a good initial target if you believe that the momentum won’t die down anytime soon, while the 1.0825 previous highs would work if you’re betting on a reversal for the Aussie.

For more conservative traders out there, you can also wait for a pullback to the broken resistance though you should keep in mind that pullbacks aren’t guaranteed with breakouts.

Feel like AUD/NZD’s downtrend is just taking a breather? You can also wait for bearish candlesticks to pop up and then aim for the broken resistance levels or even the SMAs for shorter-term opportunities.

GBP/CAD: Daily

GBP/CAD Daily Forex Chart
GBP/CAD Daily Forex Chart

What’s better than a breakout? A potential breakout that you still have time to prepare for!

GBP/CAD is forming what looks like a reverse head and shoulders pattern after falling by 850 pips or so from late May to early June.

The “neckline” isn’t as perfectly horizontal as traders usually see, so you gotta be careful in trading a “breakout” of the pattern.

1.7300 and 1.7800 are levels to watch if you’re trading an upside breakout.

Meanwhile, areas of interest like 1.6750 and 1.6600 are good targets if GBP/CAD fails to break above the neckline and drops back down instead.

Watch this one closely, mmkay?

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line