3 great setups on Wednesday. EURJPY, AUDNZD and GBPAUD
First one will be the EURJPY, where the price is meeting a great horizontal resistance. It was a crucial support in the 2018 and after the flash crash is being now tested as a resistance. Today, we do have a second test, which can be a great selling opportunity, but for a proper signal, we do need a bearish price action first. Once we will get it, this can be an amazing opportunity with a proper risk to reward ratio.
Second one is the AUDNZD, where the price is close to creating a false breakout pattern. The false breakout above the horizontal resistance and the lower line of the giant symmetric triangle pattern. Price closing a day below the green area will be a super strong long-term sell signal.
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Last one is the GBPAUD, where we do have a third head and shoulders pattern in a row. This pair is showing great respect to this formation so we can assume that it will work again. Especially, that the price already broke the neckline and positively tested that as the closest resistance. Chances for a further drop are very high.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis