While the fundamentals have brought us some interesting developments over the past few days, technical analysis fails to provide us with any amazing, ready-to-go trading opportunities. On Friday, for example, we had a great decline on the dollar but on Monday, the price reversed, recovering almost all of the losses from the previous trading session. Luckily, we’ve still managed to find a few setups that you may find interesting.
First up is USDJPY, which again tested the long-term horizontal support around 105. That was the fourth test since March 2018, which once again resulted in a bounce. Currently, the price is creating a classic double bottom formation, which has a great chance of ending with a major upswing. All we need for a proper buy signal is a breakout of the yellow neckline around 106.7
The next instrument is USDCAD, where a big ascending triangle pattern has formed. This should normally end with a breakout to the upside, but the pair surprised and broke the lower line of this structure. In technical terms, that is a legitimate sell signal with a target at 1.318.
Our third occasion can be spotted on Brent oil, where the price broke the lower line of the huge symmetrical triangle pattern, then did the same with a medium triangle and most recently, tested the lower line of this formation as a closest resistance. The test was positive for sellers as after the contact, the price went significantly lower. Sentiment is definitely negative.