If you like trading breakouts AND you’re into comdoll pairs, then you’re gonna love what I’ve spotted on the 4-hour and daily charts.
Check them out!
AUD/CAD is knocking on the .9585 zone, which is juuust below the .9650 zone that had held in July through early September.What makes the setup interesting today is that the Aussie is poppin’ up higher lows along a trend line and hasn’t traded below the 100 SMA this month.
Will we see an upside breakout in the next trading sessions? A break above the .9585 resistance could lead to a retest of the .9650 previous highs if not new 2020 highs.
But wait! Did you forget that triangles can break in either direction?!
If the Aussie ends up breaking below its trend line support, then we could see AUD/CAD head for previous support levels like .9500 or .9450.
What has great potential but is steadily declining?
If you answered “my willpower to watch what I eat during the holidays” then you’re definitely my brotha (or sistah) from another motha.GBP/NZD is pretty much in the same situation as it bounces inside a descending triangle on the daily time frame.
Check this out! The pair is now testing its 1.9100 support that hasn’t been broken since July.
If the triangle breaks to the downside, then the bears could soon aim for support levels like 1.8850 or 1.8350.
If we see an upside breakout, however, then keep your eyes on the 1.9800 or the big 2.0000 as potential profit targets.
Either way, make sure to prepare for a strong move. The School of Pipsology suggests that a breakout could be as strong as the height of the triangle. We’re talking about a multi-hundred-pip move in this case! You won’t want to miss that, would you?