On the daily chart of the Euro vs the New Zealand Dollar (EURNZD) a downtrend has been trending since October last year. The last 2 months show a consolidation in the form of an ascending channel. At the moment price is at the support level of the ascending channel.
The chart pattern can either be followed by a reversal of the trend following a breakout above the channel or a continuation if the pattern breaks out below. A breakout will guide us accordingly, therefore we stay monitoring the charts until it’s time to pull the trigger.
On the daily chart of the Us dollar vs Swiss Franc (USDCHF) for this week, price broke out below the channel we mentioned during the last week of November last year and it has been on a steep downtrend since then. The market has currently reached the near term level where we have a potential reversal candlestick formation in a pin bar and a bullish confirmation. Furthermore, the pinbar formed as an insider bar and we have a breakout above the mother candle by our confirmation candlestick.
A possibility of a reversal from this point is highly likely. However, it is important to wait for clear signs that the downtrend is over before opening any bullish positions.
Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.