Today only top notch and premium quality break outs are in our vision. I am sure you are going to love the trend lines we found for you today.
This article will provide you with a great overview of which currencies are close to seeing a massive break out. Some of the currencies mentioned here have been range bound for quite an extensive period of time and a powerful break out seems imminent.
If you were to be in search for analysis on the majors, please do not hesitate to read yesterday’s article which made a grand analysis of the EURUSD, GBPUSD, USDJPY and AUDUSD.
This currency pair is not a typical pair we review in this article, but it could be at an interesting spot for either:
a) Trend continuation
b) Reversal potential
One of the best ways to measure that is by using the trend line channel I have placed in this chart (red lines):
The AUDNZD is at a bounce or break spot and both sides could be interesting to trade. However I should note that the trend is strongly pointed downwards, so a break to the downside is preferred.
This is what needs to happen for both scenarios:
a) A break of the trend for a bigger correction to the upside à would need to see price break above the down trend channel (red)
b) A break for the trend continuation to the downside à would need to see price bounce off the trend channel (red) and break the lower time frame support line (green)
A counter trend break out back north could be interesting but is defitwo nitely more risky and only a trade which a Forex trader with more experience can handle.
Considering the divergence and bounce off the -618 target, this could be a place where the AUDNZD does make the bigger correction… then again the down trend is massive. Lets see which break it makes!
Is this currency pair something you trade yourself? Or do you focus on the majors with max maybe a couple of crosses? Please let me know down below in the comment section.
I have already mentioned this currency pair in the daily analysis of yesterday but I will quickly review one more time here. Nathan will be out of office for 1 week so I will be replacing him with the daily heads-up. Please click here to see that video. I think it is definitely worth your time.
The GBPCHF is interesting because it has 2 great trend lines. One connecting the tops (red) and the other connecting the bottoms (green). A break of either tend line could spell out great Forex opportunity.
Amidst those two trend lines there is also a down trend channel (black). A break to the upside could mean this trend channel is in fact a bull flag. A break to downside would see a continuation of the downside momentum in this channel.
The European cross is stuck in sideways chop. Nor the Euro or the Pound currently has sufficient strength to break out to either side.
The consolidation zone looks quite interesting:
1) The massive sideways zone (black lines) with 3 touches on top and bottom
2) A upward sloping trend line (green), which could translate into a ascending wedge
3) Another higher horizontal trend line (purple)
The most interesting break is a break of the top of the consolidation zone for more upside.
Weekly chart: of course in the bigger scheme of things, it is going to be a cliffhanger to which side this EG breaks out on the weekly chart. The weekly break out could see great trending modes return to this currency pair.
Will we see a break out of the down trend channel (purple) to the upside or a break of the upward trend line (dark red) for downside continuation? My biased regarding Elliott Wave favors an upside break, as you might be aware of. But I will follow price where it wants to go. I am always adjusting my vision to match that of the market.
By the way, if you are wondering how you could trade these break outs, read more here about everything connected to that:
The AUD has been losing ground against almost currency pairs. Also against the Euro of course. The angle of the trend has actually increased in steepness if we compare the three trend lines on the chart. By comparing the angle of the blue, green and purple trend lines we can obviously see the acceleration of the uptrend.
This uptrend has already seen tons, and I mean tons, of break outs to the upside (dark red lines). And even more break outs that we cannot see on the daily chart.
Will we see one more break out to the north of the trend line (red) or a bigger correction (break of purple)?
Last but not least, the GBPJPY too has a massive consolidation zone that is worth mentioning. Not only are daily wicks constructing a smaller wedge (purple), but there is clearly a bigger corrective zone being built with bigger trend lines as well (dark red).
Besides that, this chart also offers us Forex traders the following:
1) Up trend line (blue)
2) Horizontal resistance (red)
3) Horizontal support (green)
A break either way could be very interesting. Although in the grand scheme of things a break to the upside would obviously be with the trend, while a break to the downside has some space but the potential is limited due to support relatively close by (green and blue lines).
What do you think of the GBPJPY? Are you interested in a break out to both sides or only 1 of the 2? Please let me know your thoughts down below!
That wraps it up for today!
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Hope you enjoyed this free Forex analysis, thanks for reading and thank you so much for sharing!
Latest posts by Chris Svorcik (see all)
- Big Trend Warning: the US Dollar Ready for Major Lift Off in 2nd Half of 2014 - July 24, 2014
- EURCAD Continues With Down Trend – Is It Ready For Another Setup? - July 23, 2014
- Why Trading AUDCHF Today Is Better Than EURUSD - July 22, 2014
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