Before the trading week comes to a close, I’ve got a couple of potential breakouts on these 4-hour charts that you might wanna catch!
Do you think we’ll see big moves from GBP/NZD or CAD/CHF soon?
GBP/NZD: 4-hour
Reversal alert!
GBP/NZD made a couple of failed attempts to break above the 2.0500 level, creating a double top pattern on its 4-hour chart.
Are we about to see a reversal from the uptrend?
Price has yet to break below the neckline around the 2.0250 level in order to confirm that a selloff of the same height as the reversal pattern might follow.
However, technical indicators are painting a different picture and suggesting that support might hold. The 100 SMA is above the 200 SMA to suggest that there’s a chance the uptrend could carry on while Stochastic is pulling higher from the oversold region.
If pound bulls just won’t let up, GBP/NZD could stay afloat and might even make its way back up to the tops!
CAD/CHF: 4-hour
Who’s up to trade a breakout?
This pair has formed lower highs and higher lows to consolidate in a symmetrical triangle visible on its 4-hour time frame. Price is currently testing support and might be considering a breakdown.
A move below the .7240 level could be enough to confirm that a downtrend of the same height as the triangle pattern might follow. I’m seeing a fresh bearish moving average crossover hinting that the path of least resistance is to the downside!
Stochastic is also on the move down, so CAD/CHF might follow suit while bears have the upper hand. However, the oscillator is closing in on the oversold region to reflect exhaustion among sellers. Turning back up might mean that buyers are returning and ready to defend the triangle floor.
