Welcome to this week’s Market Blast Technicals.
I’m Brad Alexander and on behalf of Valutrades today we will take a look at EURJPY, EURNZD, USDCAD, and the Nikkei (JP225).
We have all been watching the global stock indices consistently climbing to new heights but with China rewriting the rules, and Japan having to cut its GDP forecast due to COVID, the Nikkei continues to fall.
On the technical side, we see this Descending Triangle with price action just bouncing off the upper trend line and the Stochastic Oscillator retreating from Overbought.
Yesterday we promised to look at support and resistance levels of USD pairs and we see USDCAD in this Ascending Triangle and the Stochastic Oscillator looking a bit bullish.
With the stronger USD and declining Crude Oil prices affecting CAD, we will wait for a break of this level of resistance to see if we reach the next key level.
Last week we spotted this Double Top on EURNZD and, as predicted when price action broke the neckline we were in a great short trade.
Now, we are watching for a chart pattern that you may not be familiar with…the Cup & Handle Pattern where, if we see price action fall in this area, we could be looking at a bullish return to higher levels.
If we look at the Daily Chart on EURJPY we see a downtrend from the end of May.
On the 4-Hour chart, we see this Symmetrical Pennant which could be a Bearish Continuation Pattern so we will keep an eye on this.
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That’s all for now. Happy trading with Valutrades and we will see you later in the week with our trading tips video.
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