Reversal alert!
I’ve got a couple of downtrend reversal patterns on the short-term charts of CHF/JPY and EUR/AUD.
Better keep your eyes on these levels before they break!
CHF/JPY: 1-hour
CHF/JPY 1-hour Forex Chart
This pair has been cruising lower so far this month, but it looks ready for a turnaround soon.
Check out this triple bottom reversal pattern yo!
CHF/JPY is already testing the neckline at the 140.50 minor psychological mark, and a break above the resistance could set off a rally that’s the same height as the chart pattern.
I’m also seeing a tiny bullish flag pattern that could be followed by another leg higher.
However, technical indicators are suggesting otherwise. The 100 SMA is below the 200 SMA to signal that bearish vibes are still present while Stochastic has plenty of room to head south. This means that price could follow suit until oversold conditions are met.
In that case, CHF/JPY might still bounce off the ceiling and go for another dip to the bottom around the 139.00 handle.
EUR/AUD: 1-hour
EUR/AUD 1-hour Forex Chart
Here’s another potential uptrend brewing on the hourly chart of EUR/AUD!
The pair is having some trouble breaking below the 1.4800 major psychological support and might make another attempt at busting through the neckline just slightly below 1.5000.
Do euro bulls have what it takes to see the double bottom through?
Technical indicators are looking mixed so far. Stochastic has a bit of room to head higher before reflecting exhaustion among buyers, so there could still be some upside for EUR/AUD.
On the other hand, the 100 SMA is still below the 200 SMA to indicate that resistance is more likely to hold than to break. To top it off, the 200 SMA coincides with the neckline to add to its strength as a ceiling.
If the 1.5000 barrier still keeps gains in check, another move back to the lows could follow. Do watch out for reversal or breakout candlesticks at the neckline then!
