Since the month of December last year a bear market ensued on the Euro versus the Japanese Yen which is clearly seen by the descending price channel that has formed since then.Price has respected the resistance and support levels of the channel to the tee.Safe to say that the main trend is a downtrend.Last week’s candlestick was bearish closing off at the support level.
For the past year the New Zealand Dollar versus the Canadian Dollar has been on a steep downtrend with one major retracement visible on the weekly time frame. Price was recently at our major level which has been acting as our support zone. In the previous week price was supported and a dominant bullish candlestick was formed.
Exactly 4 weeks ago in the month of February we covered this pair where there was a descending triangle which was on the brink of a breakout with price at the resistance zone of the pattern. Forex 101 suggests that descending triangle patterns do breakout on the downside. Well just like there are no guarantees in life neither are there any in the Forex market. Price broke out on the upside which was one of the possibilities we discussed 4 weeks ago.
Following up on this pair that we analyzed at the beginning of the month of March,our pattern was a double top that had made a weekly breakout. Our bias was that there’s a very high probability that sellers would take price lower. True to our analysis price fell into a waterfall moving for about 600 pips before hitting a bottom and forming weekly pin bar.
Viewing the Euro versus the Australian Dollar on the weekly time frame brings us to one of the most common candlesticks we know as price action traders. A pin bar at the top of a an uptrend that has been ongoing for the past 3 years. Furthermore the pin bar comes after a gap up; knowing that some gaps are usually filled, is this a potential signal of a reversal or a minor retracement before price continues higher?
Analyzing the weekly chart of the Canadian Dollar versus the Japanese Yen, there’s a double top that broke out in the past week. Price has been quite choppy for the last year and three months throwing different patterns at different stages of the consolidation. Currently the double top with a break out below is a potential bearish indication.
A steep downtrend on the daily chart of the New Zealand dollar versus the Swiss Franc recently consolidated in a double top with a slanting neckline. The pattern further broke out followed by a confirmation candle a sign that the downtrend may persist.
New Zealand dollar versus the Swiss Franc on the weekly time frame shows a down trending market within a descending wedge.The pattern suggests that the main trend is bearish. Bears have been moving the market lower for the last 3 years.
On the daily chart of the British Pound versus the US dollar(GBPUSD) we got to see a symmetrical triangle a fortnight ago. The chart pattern had not broken out then but has since broken out below.
During the second week of January we looked at The Australian Dollar vs the Japanese Yen (AUDJPY) where there was an ascending wedge present.At the time price had just broken out of the wedge and our bias was a high probability bears may take the price lower.