Daily analytical report (31/10/18)

Alpari Market Review
Alpari Market Review


Today we will not focus on any major instrument on Forex as we have three interesting setups on several exotic pairs. First up is CHFJPY. The pair has been in a nice bullish correction, which was initiated by the inverse head and shoulders pattern. The price tried to break the mid-term downwards trend line twice, but was unsuccessful, which is a negative sign. This may create a situation where we will have a flag and a further downswing instead of the iH&S pattern and a rise.

EURNZD dropped below the horizontal support after creating the double top formation. That is definitely negative, and opens the path towards the long-term upwards trend line. The sell signal is ON.

Lastly we have AUDCHF, which is in a similar situation as EURNZD, but the horizontal support is still fighting at the upper line of the ascending triangle, which was broken yesterday. That is normal if we are testing that as a support, but the outcome is unknown. We will get a major sell signal if the price closes the day below the orange line.

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