Bulls and bears have been playing tug-of-war on EUR/AUD’s 1-hour forex chart for quite some time now, but neither side seems to have an advantage over the other. As a result, price action has formed into a rather obvious symmetrical triangle pattern. Since it’s a symmetrical triangle, then we don’t really have any directional bias, although the overall trend is still down and stochastic is about to reach overbought territory, so the path of least resistance seems to be to the downside. The moving averages are already indicating an uptrend, however, but they look like they’re coming closer together for a potential cross-over into downtrend mode. In any case, the height of the forex chart pattern is around 400 pips, so the resulting rally or sell-off could probably have enough momentum to move for the same amount.
An ascending triangle has formed on GBP/USD’s 1-hour forex chart, although it also looks like a flag or pennant on the higher time frames. Well, whether it’s an ascending triangle or a bullish pennant doesn’t really matter since both forex chart patterns are bullish in nature, so our main directional bias is to the upside. Anyhow, if the chart pattern is an ascending triangle, then it has a volatility of around 100 pips, so the pair could potentially move for that amount if a breakout does occur. But if it’s a pennant, then the pair could probably move for around 300 pips since that is roughly the height of the pennant plus its pole.
Looks like a rather massive 450-pip ascending triangle has formed on EUR/JPY’s 4-hour forex chart. Our directional bias is, of course, to the upside. And looking at our technical indicators, it looks like the moving averages have already crossed-over into uptrend mode, with the 100 SMA acting as dynamic support. Stochastic is currently at overbought territory, however, so the time may not be right for an upside breakout. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
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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