Got another comdoll special for y’all today!
This time, I’m staying on the lookout for breakouts on EUR/CAD and AUD/NZD to see if trend reversals are in the works.
EUR/CAD: 4-hour
Is that a double bottom I’m seeing on the 4-hour chart of EUR/CAD?
If so, that means a reversal from the downtrend is due!
The pair just has to clear the neckline resistance around the 1.3775 area to confirm that an uptrend will follow. Once that happens, price could climb by the same height as the chart pattern, which spans close to 400 pips.
However, technical indicators aren’t quite feeling the bullish pressure just yet. The 100 SMA is below the 200 SMA to hint that there’s a chance resistance would hold while Stochastic is reflecting overbought conditions.
Turning lower might confirm that selling momentum is about to pick up again, possibly sending EUR/CAD back down to the lows near 1.3400.
AUD/NZD: 4-hour
This pair seems to be on a steady uptrend, but I’m seeing signs of indecision with that short-term descending triangle pattern.
Which way will it go from here?
A move below the triangle bottom around the 1.1000 major psychological mark would also mean a break below the trend line support, suggesting that a selloff might follow.
On the other hand, a rally past the resistance around 1.1050 would confirm that the uptrend is gaining traction. This might be enough to lift AUD/NZD to the recent highs and beyond.
Take note that Stochastic is pulling higher to show that buyers are regaining the upper hand. At the same time, the 100 SMA is above the 200 SMA, indicating that the path of least resistance is to the upside.
