Today we will not focus on any major instrument on the forex market as we have three interesting setups on more exotic pairs. First, we go to CHFJPY. The pair was having a nice bullish correction, which was initiated by the inverse head and shoulders pattern. Thee price tried to break the mid-term down trendline twice but was unsuccessful, which is a negative sign. This may create a situation, where instead of on the iH&S pattern and a rise, we will get a flag and a further downswing.
EURNZD dropped below the horizontal support after creating the double top formation. That is definitely negative and opens us away towards the long-term up trendline. The sell signal is ON.
Last instrument here is the AUDCHF, which is having a similar situation as EURNZD but the horizontal support is still fighting. That is an upper line of the ascending triangle, which was broken yesterday. That is normal that we are testing that as a support but the outcome is unknown. If the price will close a day below the orange line, we will get a major sell signal.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis