Both EUR/JPY and EUR/AUD have formed triangles on their long-term charts.
Think we’ll see a breakout soon?
Check out the levels I’m watching.
EUR/JPY has been in selloff mode lately, but it seems to be finding a floor at the bottom of its descending triangle on the daily time frame.
Will buyers keep defending this level?
If so, the pair could bounce right back up to the triangle top at the 131.00 major psychological resistance.Technical indicators are giving mixed signals, though! Stochastic is pulling higher from the oversold region to confirm that buyers are ready to step up.
However, the 100 SMA is still below the 200 SMA to hint that there’s a chance support could break.
If that happens, EUR/JPY could tumble by the same height as the triangle formation. That’s close to 600 pips yo!
This one has formed lower highs and higher lows on its 4-hour time frame, creating a symmetrical triangle pattern.
Is it ready to bust out soon?EUR/AUD just bounced off the triangle top but looks ready to make another attempt at an upside breakout. If it pulls through, we might just see a rally that’s the same size as the chart formation.
I’m seeing a bullish moving average crossover that suggests the path of least resistance is to the upside. At the same time, Stochastic is heading north, so price could follow suit while buyers are in control.
In any case, better keep your eyes peeled for either reversal or breakout candlesticks around the 1.5900 mark!