Wassup? As y’all can see, USD/JPY has been trading higher while inside that there ascending channel. And presently, the pair is currently testing the channel’s support area. Y’all therefore better start lookin’ for opportunities to go long. And all the more so, given that stochastic is already indicating oversold conditions and all that. Moreover, them moving averages are still in uptrend mode. And it even looks like the 200 SMA is acting as dynamic support to boot.
Do note, however, that them bears appear to be well entrenched at 114.90, so the upswing should ideally be on strong momentum. Although y’all may wanna keep an eye on how the pair reacts if or when the pair reaches 115.40. Also, since 114.90 appears well-defended, there’s a chance that them bears would attempt a downside channel breakout. The pair needs to clear 113.90 before the breakout is confirmed, though. So if you short on a downside breakout, then just know that you can’t chillax until the pair smashes past 113.90. Know what I’m sayin?
USD/CAD has been recently consolidating into what appears to be a symmetrical triangle pattern. Although it does kinda look like a bullish pennant on the higher time frames. Anyhow, a bullish pennant is, as the name says, a bullish chart pattern. A symmetrical triangle, meanwhile, could break out in either direction.
If what we’re lookin’ at is a symmetrical triangle, then the pair could move for about 130 or so pips in either direction. But if that there is a bullish pennant, then the pair could move higher for a whopping 400 pips. Looking at our technical indicators, they currently seem to support further moves to the upside. Stochastic, for one, is already moving up after visiting the oversold area. Them moving averages, meanwhile, are still in uptrend mode, with the 200 SMA acting as dynamic support to boot. In any case, just make sure to practice proper risk management, a’ight? Also, make sure to keep an eye on how the pair reacts to 1.3540 and 1.3380 for an upside breakout and a downside breakout respectively.
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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.