Last week, DAX broke the long-term neckline of the major head and shoulders pattern. This week starts with a pull-back, which is nothing surprising as this is a typical price action movement. DAX is about to test the recently broken support as a resistance. Any bearish price action there will give us a legitimate signal to go short.
Next one is the AUDNZD, which has a proper sell signal. Technically it is all caused by the false breakout pattern above the horizontal support and the upper line of the symmetric triangle pattern. Fundamentally, this drop is driven by the higher CPI data from New Zealand. With all this, the sentiment is negative.
The last one is the USDJPY, where we do have a bounce from the long-term up trendline, connecting higher lows since March. It looks cool but we do not have a buy signal yet. This one will be triggered, when the price will break the mid-term down trendline (red) and the 50% Fibonacci.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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