Although from the fundamental point of view, we do have few interesting developments in the past few days, the technical analysis fails to bring us amazing, ready to go, trading opportunities. On Friday for example, we had a great weakening of the Dollar but on Monday, the price reversed, erasing almost all the losses from the day before. Luckily, we managed to find few setups, which may seem interesting to You.
First one is the USD/JPY, which again, tested the long-term horizontal support around 105. That was the fourth test since March 2018 and another one, which resulted with the bounce. Currently, the price is creating a classic double bottom formation, which has a great chance to end with a major upswing. All we need for a proper buy signal is the breakout of the yellow neckline around 106.7
Next instrument is USD/CAD, where the price was drawing a big ascending triangle pattern. That normally should end with a breakout to the upside but the price surprised and broke the lower line of this structure. In technical terms, that is a legitimate sell signal with the target on the 1.318.
Third occasion can be spotted on the Brent, where the price broke the lower line of the huge symmetric triangle pattern, then did the same with a medium triangle and most recently, tested the lower line of this formation as a closest resistance. Test was positive for the sellers as after the contact, price went significantly lower. Sentiment is definitely negative.