Winds of Change
I know… I know… some of you will say its to soon to say the market is on its way for a large retracement phase, but I think it will… take a look at the following chart:
That triangle is gone… usually triangles break in direction of the trend, but this wasn’t the case, it broke against it… Now, if you pay close attention there also another formation there… A double bottom (validated with the break of the main resistance line). So, from my point of view, this would be the start of a retracement phase, being 1.3346 our first target. Only time will tell…
We have several currency pairs in the same scenario, including: USDCHF, GBPUSD, GBPJPY, EURJPY, AUDUSD and USDCAD.
Good luck in your week!