EUR/CAD 1H Chart Emerging Pattern: Channel Down

by Admin

NZD/USD 1H Chart

Emerging Pattern: Rising Wedge

NZD/USD has formed a Rising Wedge pattern on the 1H chart. The pattern has 69% quality and 64% magnitude in the 150-bar period.

The pattern began on 18th of April when the pair peaked to 0.8492; at the moment it is trading at the 20-bar SMA at 0.8569. The gap between the pattern’s support and resistance narrows by 60 pips ir 100 bar period. Trading volume seems to be decreasing lately. Long traders could focus on the Bollinger band at 0.8575, daily pivot (R1) at 0.8589, pattern’s resistance at 0.8611 and daily pivots at 0.8630 (R2) and 0.8683 (R3).

The Stochastic indicator on 1D horizon sends sell signal suggesting it is oversold and we might see a dip any time now. Short traders could focus on the Bollinger band/daily pivot (PP) at 0/8543/36, pattern’s support at 0.8519, daily pivot (S1)/20-day SMA at0.8494/93, 200-bar SMA at 0.8470, daily pivot (S2) at 0.8442 and daily pivot (S3)/100-day SMA at 0.8401/382.


EUR/CAD 1H Chart

Emerging Pattern: Channel Down

A rally that has brought EUR/CAD up to 1.3525 appears to be exhausted, which created an opportunity for the pair to form a channel down pattern on a 1H chart. In aggregate technical indicators are giving a ‘sell’ signal, though it is rather weak. Still, most (59%) traders view scenario of Euro’s depreciation as a more likely one.


USD/ZAR 1H Chart

Emerging Pattern: Channel Down

USD/ZAR has been in a down-trend for the last 101 trading hours. Judging by the traders’ sentiment in the market, the currency pair should continue falling—70% of opened positions are short. On the other hand, technical indicators are mixed. For now the price is trading flat, but the sell-off should be reignited once the pair approaches the upper line of the channel at 9.0981.


USD/SEK 1H Chart

Emerging Pattern: Channel Down

While the length of this pattern (86 bars) may not inspire confidence that the currency pair is going to respect the bearish trend-lines and thereby descend, we can see that both boundaries have already been confirmed a considerable number of times. If we look at positioning of market participants, it becomes clear that most of them anticipate a rally, seeing the current weakness only as a correction phase.