This week on the AUDNZD pair we have a setup that depicts a pattern within a pattern. A double bottom within a descending triangle. The double bottom broke out, pulled back to the neckline and was supported. Evidence of the pullback is the lower shadow on the pullback candlestick, that means lower prices were rejected as there was buying pressure.
We have a bullish bias following the double bottom breakout. However we need a confirmation candlestick to increase the probability of the opportunity. A confirmation in this case would be a close above/breakout of the descending triangle.
The main trend on the EURCHF pair has been bearish as prices have been trending within a descending channel since April last year. Prices are currently at a major support zone. Last week, prices closed off forming a Fakey setup. Traders were faked out going bullish but then there was a close below the mother candle.
The Fakey setup is a bearish signal, nevertheless caution should be observed as we’re at a major support zone. Price action will guide as to whether we will follow price following a breakout below the level, or rally higher to the upper boundary of the channel.
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.