CAD/JPY 1H Chart Emerging Pattern: Channel Down

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EUR/NZD 1H Chart

Emerging Pattern: Channel Down

EUR/NZD has formed a Channel Down pattern on the 1H chart. The pattern has 63% quality and 78% magnitude in the 142-bar period.

The pattern began on 20th of March when the pair peaked to 1.5773; at the moment it is trading at the 20-bar SMA at 1.5321. Trading volume seems to be holding in the same level in the length of the pattern. Technical indicators on aggregate do not provide any conclusive readings. Current market sentiment is strongly bullish as 68% of market participants are long on the pair. Long traders could focus on the cluster of resistance levels at 1.5351/67 (Bollinger band, daily pivot (R1) and [pattern’s resistance), daily pivot (R2) at 1.5429 and 200-bar SMA/daily pivot (R3) at 1.5484/98.

Short traders, who expect that pair might start depreciating, could focus on the daily pivot (PP)/Bollinger band at 1.5299/98, daily pivot (S1) at 1.5235, daily pivot (S2)/pattern’s support at 1.5167/52 and daily pivot (S3) at 1.5104.

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CAD/JPY 1H Chart

Emerging Pattern: Channel Down

Being that CAD/JPY was unable to breach the 200-bar SMA throughout the last 177 trading hours, a notable majority of market participants do not expect that this pattern will change in the near future and accordingly hold short positions. However, technical indicators are mixed at the moment.

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NZD/JPY 1H Chart

Emerging Pattern: Triangle

After rallying as high as 79.93 NZD/JPY has entered a consolidation phase, fluctuating around the 200-bar SMA for more than 300 hours. Soon the currency pair is bound to exit the pattern, since the apex of the Triangle is already nearby. Positioning of traders reveals that an overwhelming majority (75%) of them anticipate breach of the up-trend support line.

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USD/SGD 1H Chart

Emerging Pattern: Channel Down

Even though the most recent (last 156 bars) price action and technical indicators suggest that USD/SGD is in the down-trend and is likely to carry on declining further, three out of four market participants are bullish on the pair. The nearest resistances to be challenged in that case are 1.2399 and 1.2415, the latter being the down-trend resistance line.

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