AUDNZD DOUBLE TOP PATTERN FORMATION SHORTWe expect further downside on this pair, signalled by the double-top pattern breakout. We can also see the breakout of a key level which further supports our directional basis.
Doubletopresistance
CADJPY Bearish OutlookPrice is currently within a ranging channel. After it made a fake-out at the support level it has formed a rising wedge pattern as it reaches the resistance level for the second time, forming a double top bearish reversal pattern. Now, before price breaks out of the wedge , it is also looking to form a head and shoulders pattern as the impulsive move is looking to make a retracement.
EURUSD Double Top Resistance|Local Support|Bearish Retest(Short)Today’s Technical Analysis – EURUSD – testing local support, a bearish retest will allow of a short entry.
Points to consider,
- Double top resistance (bearish formation)
- Local support confluence
- RSI below 50
- Stochastics buy cross
- Volume below average
The double top resistance was established with an impulse sell off into local support, which is the current trade location. The local support has multiple confluences; a bounce into the range median is probable for a bearish retest.
A confirmed bearish retest will allow for a short entry with defined risk
The RSI is below 50, showing weakness in the market as momentum shifts to the downside. Stochastics on the other hand is signalling a buy cross; an immediate bounce from local support is probable.
Volume is currently below average where an initial influx is likely as this is a key trade location.
Overall, in my opinion, if EURUSD establishes a bearish retest with declining volume, the probability of an impulse down is likely.
Price action will be important to monitor for a directional bias
What are your thoughts?
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And remember,
“It is always the best discretion to let the market show us where it is going and just simply follow (this would be prudent), rather than predict where the market is going and place a position (this would be gambling).” -Anne-Marie Baiynd
