Looking at the overall trend in this market, price has formed a descending triangle pattern with support at a long-term horizontal level, which is 1.3030. Price closed for the week just at this level, and looking closely at the candles, we can see many candles with long wicks to the upside, suggesting sellers could not take control of the market. With the US election results coming up and a Biden victory is looking likely, I'm expecting the USD currency to weaken, and therefore this also matches up with this technical analysis.
We have been watching this pair for a while now; price has finally broken the 1.30 resistance favorably and is currently at 1.3150. This is the next resistance bulls must break in order to fulfill the ascending channel visible. Price closed for the week with an indecision Doji candle, suggesting we may see some pullbacks before price can successfully make this move. However, with the possible USD weakness coming in due to the Biden victory, we may see price make this move instantly once the results are officially announced.
Price is in this long-term ascending channel and currently holding near the support of the channel. Price has been struggling to break through the 137.600 level; this now creates an ascending triangle pattern on this pair as price is steadily making it's move to the upside but is not breaking through the resistance. Eventually, this will lead to the apex point and cause a burst of hopefully the upside. Look out for price action confirmations of a rejection to the trendline to get involved early or wait for price to break the resistance and enter on the retest successfully.
Price was forming a descending triangle pattern on this pair; however, with the US elections coming to an end and a Biden victory looking likely, the USD began to weaken, causing price to break to the upside (which is entirely normal and can happen in this pattern) and break the trend and recent high. I expect this move to continue and price to completely break every high and reach recent monthly highs at 2050.00.
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
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