As y’all can see on the chart above, EUR/JPY has been slowly grinding higher while trapped in that there ascending channel. Price just recently tested the channel’s support area and seems to be bouncing higher. So if you’re bullish on the pair, then you better start looking for opportunities to go long. Stochastic has recently been unable to reach the overbought area, though. This implies strong bearish interest, so make sure prepare for a possible downside channel breakout as well.
Next up on today’s chart pattern fiesta is that there symmetrical triangle on USD/JPY’s 1-hour chart. A symmetrical triangle chart pattern means that bulls and bears are fighting it out, but neither side has a clear advantage. As such, a topside breakout is just as likely to happen as a downside breakout. Anyhow, the base of the triangle is about 170 pips in height, so a breakout move in either direction could potentially last for the same amount. Just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
Reversal alert! A potential inverse head-and-shoulders pattern has appeared on AUD/CAD’s 1-hour time frame. I say “potential” because the chart pattern hasn’t been validated yet, given that the pair still hasn’t moved past the neckline at 0.9880. But assuming that the pattern is validated, then the pair could move higher past the neckline for around 110 pips. For forex traders who are more bearish on this pair, however, just know that stochastic is already signalling overbought conditions while the 200 SMA appears to be acting as dynamic resistance, so there’s also a chance that the pair may move lower instead. And besides, the chart pattern hasn’t been validated yet, as I said earlier.
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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.