Triangle patterns have been treatin’ us right lately. January 10’s symmetrical triangle on EUR/CAD gave us 90 pips. The descending triangle on AUD/NZD’s 1-hour forex chart, which we identified on January 6, gave us 100 pips. Sweet! January 5’s symmetrical triangle for GBP/NZD, meanwhile, gave us a whopping 540 pips. Now that’s what I’m talkin’ about! As for January 3’s descending triangle for AUD/USD, that gave us 280 pips. Aww, yea! We got bread, dawg!
Anyhow, the market will hopefully also treat us right today, since I’m servin’ up another triangle. This time, I’ve got a symmetrical-ish triangle pattern formin’ up on EUR/CHF’s 1-hour chart. Anyhow, the pair may break out in either direction, so y’all may wanna prepare for both an upside and downside scenario. Just keep an eye out on how the pair reacts to 1.0760 (if long) and 1.0690 (if short). After all, them areas respectively served as resistance and support in the past.
Back on Wednesday, I told y’all that there’s a small chance that the pair may break to the downside instead from that ther descending channel. I also told y’all that if that be the case, then bears will likely be shooting for the next area of interest at 1.4850. Well, as y’all can see, there was a downside breakout, but the pair didn’t quite get to 1.4850 no way. This gives those of y’all who missed entering short, a chance to start looking for opportunities to go short. Know what I’m sayin?
If it ain’t clear to y’all, the pair is currently attempting a break-and-retest. If you look at that there chart, the pair smashed the descending channel and then pulled back to the area of interest at 1.5000. However, the moving averages are already in downtrend mode and all that while stochastic be signaling overbought conditions already. There’s therefore a good chance that the pair would be sent lower again. Now you feel me? In any case, just make sure to practice proper risk management, aight? Peace y’all! I’m out! See y’all next week!
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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.