On the weekly chart of The Euro vs The Australian Dollar, we can see the complete formation of an ascending triangle. Price has been trading within the triangle since August last year. Moreover, two months ago we had a false breakout whereby a candlestick closed above the triangle, but the next one reversed prices all the way down to the lower boundary. This is why it’s important to wait for confirmation after a breakout to avoid false breaks. Recently we see another close above the triangle.

Following up on this week’s analysis looking at the Euro Kiwi, which we looked up a fortnight ago. At the time, price was trading within the ascending channel. Our bias was bullish. But then the ensuing week, price broke out of the channel and was confirmed. Immediately our bias shifts to bearish. A double top was later formed, broke out and came for a retest of the neckline.

On this week’s analysis, we’ll be looking at the CADJPY pair on the daily timeframe. The market has been consolidating forming lower highs and resulting into a descending triangle.

On this week’s analysis, we’ll be looking at the CADJPY pair on the daily timeframe. The market has been consolidating forming lower highs and resulting into a descending triangle.