Word up, homie! As y’all can see, EUR/CAD has recently been trading sideways while slowly tapering to a point. And in the process, a fresh symmetrical triangle pattern has now formed. A symmetrical triangle means that bulls and bears are fightin’ it out. However, neither side has a clear advantage yet. As such, the pair could potentially break in either direction sooner or later. And if a breakout does occur, then the resulting rally or selloff may have enough steam for a 180-pip move. Just make sure to keep an eye out on 1.3980 if an upside breakout happens. For a downside breakout, make sure to observe how the pair reacts to 1.3790. The two price levels I noted are price areas with very significant market interest. The pair therefore needs to smash past ’em with convincing momentum. Otherwise, there’s a chance that the breakout may end up being a fakeout. Know what I’m sayin?
We originally had a head-and-shoulders pattern for EUR/NZD back on February 16. However, the pair failed to breach the pattern’s neckline at 1.4850, so the pattern got invalidated. Anyhow, if we take the most recent price action into account, then another symmetrical triangle has formed for us to play with. The triangle’s base is a whopping 320 pips tall, and a breakout in either direction could potentially last for the same amount. Just make sure to keep tabs on how the pair reacts to 1.4850 and 1.4550 if an upside and downside breakout respectively happens. Although for an upside breakout, you may wanna wait until the pair clears 1.4930 before chillaxing. In any case, just remember to practice proper risk management, a’ight? Peace! I’m out!
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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.