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HomeForex EducationWeekly Technical Outlook: Reversal Patterns on EUR/JPY and AUD/CAD

Weekly Technical Outlook: Reversal Patterns on EUR/JPY and AUD/CAD


Able to catch huge strikes this week?

Listed here are the long-term areas of curiosity it’s best to have a look at on EUR/JPY, AUD/CAD and silver.

Silver (XAG/USD) Weekly Chart

Silver (XAG/USD) Weekly Chart

I don’t often watch silver costs however after I do, it’s as a result of the commodity is sitting proper on a long-term space of curiosity!

As you possibly can see from the weekly chart above, silver is hanging out on the former resistance zone between $18-20 and appears to be trying a breakdown.

In any case, the dear steel already misplaced traction on its earlier bounce then hit a ceiling on the 200 SMA dynamic inflection point. If bearish vibes keep on, silver would possibly even tumble to the following flooring close to $14!

Technical indicators are suggesting that there’s nonetheless an opportunity for bulls to come back by means of, as Stochastic is hovering across the oversold area. On the similar time, the 100 SMA is above the 200 SMA to replicate shopping for stress.

EUR/JPY Daily Forex Chart

EUR/JPY Each day Foreign exchange Chart

Brace yourselves for a possible reversal on this one!

EUR/JPY seems to be finishing a head and shoulders pattern on its day by day timeframe, because the pair is discovering resistance on the 140.00 deal with.

One other leg decrease from right here may kind the second shoulder and spur a check of the neckline round 135.00-136.00. If bearish stress is robust sufficient to set off a breakdown, we’d simply see EUR/JPY slide down by the identical top because the chart pattern.

Technical alerts are wanting combined, although. The 100 SMA continues to be above the 200 SMA to replicate upside momentum whereas Stochastic seems prepared to show decrease from the overbought area.

Higher hold a watch out for affirmation from these reversal candlesticks forming at present ranges for those who’re shorting.

AUD/CAD 4-hour Forex Chart

AUD/CAD 4-hour Foreign exchange Chart

Now right here’s a reversal sample that appears able to play out!

AUD/CAD appears achieved with its climb, because the pair accomplished a head and shoulders formation on its 4-hour timeframe.

Worth is has even closed under the neckline across the .8950 minor psychological mark to trace that sellers have the higher hand.

In that case, AUD/CAD may slide by the identical top because the chart formation, which spans roughly 200 pips.

Assume we’ll see a drop to the .8700 ranges subsequent?

Simply watch out when shorting because the 100 SMA continues to be above the 200 SMA, and Stochastic is signaling oversold circumstances. Then once more, the hole between the moving averages is narrowing to point out {that a} bearish crossover is within the playing cards.



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