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. Currently price has formed a pin bar followed by a confirmation candlestick. This candlestick pattern is a potential reversal signal.
In as much as we have a sign that the market may reverse or change direction keep in mind that the market trend is bearish. The reversal may be short lived, happen imminently or not happen at all. Price action will continue to guide us on which of the above scenarios is most likely to happen.
The US dollar versus the Canadian Dollar on the weekly time frame depicts a clear descending triangle. Price has been within this consolidation for one year and four months. Price is at the resistance level of this particular pattern. Rejection of higher prices at this point would be a good bearish sign. Last week’s candlestick closed below the resistance zone.
Another bearish candlestick would act as confirmation that bears are getting into the market. Sellers may then decide to move price lower heading towards our near term level. However bulls may take charge and cause a breakout above the pattern. As usual price action confirmation will guide us accordingly.
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.