Is GBP/JPY in for more downside moves? Well, looking at that there chart, we can see that the pair is consolidating into a rather obvious rising wedge, which is usually considered a bearish forex chart pattern. Looking at our technical indicators, stochastic is already pointing down and moving away from overbought territory while the moving averages are still signalling a healthy downtrend, with the 200 SMA acting as dynamic resistance to boot. Anyhow, the resulting selloff after a breakout would likely have enough bearish momentum for a 380-pip move, based on the height of the pattern.
EUR/NZD has been bouncing up and down while steadily grinding ever lower since early February, forming a rather messy-looking descending channel in the process. Price is currently milling about near the top of the channel, so y’all better start looking for opportunities to go short, especially since the 100 SMA seems to be acting as dynamic resistance. The only worrying thing is that stochastic is moving higher after paying a visit over at the oversold region since that implies that bulls are now in control, so make sure to prepare for a potential upside channel breakout as well. 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?
Reversal alert! CHF/JPY tried to move past support around the 112.50 minor psychological level but got repulsed again and again, thereby forming what seems to be a potential double bottom. Price is currently making its way up, and bullish momentum seems to be healthy. Also, the moving averages have just recently crossed-over into uptrend mode, which is a real confidence booster. Stochastic is already indicating oversold conditions, though, so forex traders who are bullish on the pair may be running out of steam soon. If enough buyers will come in to push the pair past the neckline at the 114.40 handle, then the forex chart pattern will be validated and the pair may move higher for around 190 pips since that’s the height of the pattern.
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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