EUR/GBP 1H Chart Emerging Pattern: Double Bottom

by Admin

EUR/GBP has formed a Double Bottom pattern on the 1H chart. The pattern has 78% quality and 60% magnitude in the 115-bar period.

The pattern began on 25th of March when the pair peaked to 0.8561; at the moment it is trading at the Bollinger band at 0.8443; pattern’s resistance is at 0.8476. Trading volume seems to be decreasing in the length of the pattern. Technical indicators on aggregate point at appreciation of the pair on 1H and 4H horizons suggesting it should continue moving towards pattern’s resistance. Long traders could focus on the daily pivots at 0.8454 (R1) and 0.8467 (R2), 200-bar SMA/pattern’s resistance at 0.8474/76 and daily pivot (R3) at 0.8488.

Technical indicators on aggregate point at depreciation of the pair on 1D horizon suggesting it might not breach from pattern’s resistance. Short traders could focus on the 20-bar SMA at 0.8439, daily pivot (PP)/20-day SMA/Bollinger band at 0.8433/30, daily pivot (S1) at 0.8420, pattern’s low at 0.8411 and daily pivots at 0.8398 (S2) and 0.8385 (S3).

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EUR/NZD 1H Chart

Emerging Pattern: Channel Down

After violation of the 200-bar SMA the currency pair has been in a clear down-trend on a 1H chart, thus forming a Channel Down. The boundaries of the pattern have been repeatedly confirmed by the price action, informing about their reliability further on. Since the pair has just encountered the upper edge of the corridor, there is an increased chance of a dip emerging in the near future.

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USD/PLN 1H Chart

Emerging Pattern: Channel Up

Bullish sentiment of the market towards USD/PLN (65% of opened positions are long) is reinforced by the Channel Up pattern being developed on a 1H chart. However, at the moment the pair is undergoing a bearish correction and is expected to slide down to 3.2216 before we witness a strong recovery.

USDPLN

EUR/JPY 1H Chart

Emerging Pattern: Channel Down

At first, when initiating the pattern, EUR/JPY was fluctuating in a wider corridor, but recently has started to concentrate more on the falling support line, which has been challenged four times in a row already. Concerning SWFX traders, they are presently undecided, 52% of them are bullish and 48% are bearish on the pair.

EURJPY