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.
Exactly a month after the analysis, price broke out and we can see that truly sellers came in and pushed for lower prices. Our price pattern acted as a continuation pattern leading to a resume of the bear market. Stay tuned watching this market to see for how long will the sellers control this market manifest.
Three weeks ago on the weekly chart of the British pound versus the New Zealand dollar (GBPNZD), there was formation of inside bars. Price had just topped our major level and moved down a few hundreds of pips to where the inside bars formed. A fortnight later price broke out above the mother candle, signifying a potential move upwards.
Ensuing the breakout above the mother candle,price moved higher. Last week’s candlestick just closed at the major level. In the coming weeks we monitor the pair to determine whether bulls have enough momentum to push price past the major level.
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.