- From a technical point of view, the main pair is in positive territory. We are above the neckline of the inverse head and shoulders pattern, which gives us a buy signal. Yesterday, the price met the first target for this formation, which is the 38.2% Fibonacci. A new buy signal will be triggered when the pair breaks the 38.2% Fibonacci, and a sell signal will be triggered upon a breakout of the lower line of the wedge pattern (red).
- The next instrument is USDCHF, which does not want to go down despite an excellent bearish setup. The pair is currently testing the ultimate resistance created by a few bearish factors being in the same area. If we don’t get a bounce from this level now, the great bearish chance will be wasted. Closing the day above the black line will be a signal to go long.
- A very clean and simple sell signal can be found on the USDJPY. The price has formed a head and shoulders pattern. Yesterday, USDJPY broke the neckline of this formation (red) along with the yellow horizontal support. Today, we are bouncing from those areas after testing them as a closest resistance. As long as the price stays below the yellow area, sellers have a better chance of success.
Alpari - Analytics
