Looking to trade chart patterns today?
I’ve got a couple of wedge formations on USD/CHF and AUD/USD right here!
Check out this retest and potential breakout:
The wedge consolidation on USD/CHF has been getting tighter and tighter, which means that the pair must be gearing up to bust out soon.
But which way will it go?
Moving averages are pointing to a potential bearish move, as the 100 SMA is below the 200 SMA to reflect downside pressure.
If USD/CHF closes below the wedge support around the .9350 minor psychological mark, we might just see a selloff that’s the same height as the chart pattern. That’d be roughly 300 pips yo!
However, Stochastic is already indicating oversold conditions or exhaustion among sellers, so turning higher would mean that buyers are back in the game.
In that case, support might hold again and send USD/CHF back to the wedge resistance around the .9400 mark or higher.
Missed the breakdown on this one?
Don’t fret! You might still have a chance to catch this retest of the former wedge support.
AUD/USD is pulling up to the 61.8% Fibonacci retracement level, which happens to line up with the area of interest near the .6800 major psychological mark.
If this holds as a ceiling, the pair could resume the slide to the swing low at .6668 or lower. After all, technical indicators are hinting that the selloff could carry on from here.
The 100 SMA crossed below the 200 SMA once more, signaling that sellers have the upper hand. At the same time, Stochastic is in the overbought territory and looks ready to move south as well.
Just take note that AUD/USD is trading above both moving averages, so these might hold as near-term dynamic support near the .6750 handle.