GBP/USD has formed a Rising Wedge pattern on the 4H chart. The pattern has 51% quality and 60% magnitude in the 70-bar period.
The pattern began on 28th of November when the pair dipped to 1.5963; currently it is trading at 1.6184. Trading volume seems to be slightly lower in recent periods. Technical indicators on aggregate point at appreciation of the pair on 4H, 1D and 1W horizons suggesting it will continue following pattern’s, upward sloping, trend. Long traders could focus on the Bollinger band/pattern’s resistance at 1.6187/91, recent high/daily pivot (R1) at 1.6200/03 and daily pivot (R2) at 1.6228.
The Stochastic indicator sends sell signal on 1D horizon suggesting we might see a bearish correction in the near future. Current market sentiment is strongly bearish as 75% of traders hold short positions on the pair. Short traders could focus on the daily pivot (PP) at 1.6154. 20-bar SMA/pattern’s support/daily pivot (S1) at 1.6139/29 and Bollinger band/daily pivot (S2) at 1.6079.
USD/NOK 1H Chart
Emerging Pattern: Descending Triangle
USD/NOK has formed a Descending Triangle on a 1H chart. The pattern was started more than 262 bars ago on Nov 29. Since the inception of the triangle the price of the U.S. Dollar, which currently stands at 5.6434, has already fallen 750 pips. While the currency pair approaches the apex of the pattern, near-term indicators stay largely silent.
USD/SGD 1H Chart
Emerging Pattern: Triangle
USD/SGD has formed a Triangle on a 1H chart. Both converging trend-lines were confirmed three times are appear to be quite reliable, decreasing the likelihood of a breakout from the pattern in the nearest future, while technical studies give mixed signals. However, SWFX traders’ sentiment is strongly bullish, with 72% of positions being presently long.
CAD/JPY 1H Chart
Emerging Pattern: Rising Wedge
CAD/JPY has formed a Rising Wedge on a 1H chart. The currency pair has been posting higher highs and higher lows since Dec 7 after the price has bounced off the 200-bar SMA, gaining more than two figures for the last 130 hours. Judging by technical indicators and SWFX sentiment index, the pair is well-positioned to carry on advancing.