Bulls and bears are fighting it out in NZD/CAD’s 1-hour chart, so much so that price action is beginning to taper into a point. However, neither side has a clear advantage other, which is why a symmetrical-ish triangle has formed. This also means that the pair could break either to the topside or to the downside, so make sure to prepare for both scenarios. In any case, the base of the triangle is about 260 pips in height. A break in either direction could therefore potentially last for the same amount.
GBP/JPY has been grudgingly moving higher while trapped inside an ascending channel. And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long near the channel’s support area. And it just so happens that price is currently close to the channel’s support area. But before you jump in, just note that a there’s a bearish hidden divergence between price action and stochastic. This means that there’s also a chance that the pair could go lower and attempt a downside channel instead.
A double top pattern appears to have formed on EUR/CAD’s 1-hour time frame. A double top is a bearish forex chart pattern, so our main directional bias is to the downside. And if a downside breakout does occur past the neckline at 1.4620, then the resulting selloff could possibly last for around 250 pips, based on the height of the pattern. However, if we connect the pair’s recent troughs and peaks, we also get an ascending channel, which is a bullish chart pattern. There is therefore also a chance that the pair will continue to trend higher rather break lower. Well, whichever setup you choose to play, just make sure to practice proper risk management, 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.