Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

Short-Term Symmetrical Triangle Opportunity on AUD/NZD

July 19, 2020 (Last updated on July 21, 2020) by

Following the example of its major counterpart, AUD/NZD seems to be ready to breakout to the upside for some additional, albeit short-term, bullish action on its H4 chart. The currency pair had been in a strong uptrend for 3 days starting on July 13 before it entered a consolidation phase in the shape of a symmetrical triangle.

You can see the symmetrical triangle pattern marked with the yellow lines. The cyan line is my pending entry’s location (it is placed at 10% of the triangle’s base width above the upper border). My take-profit will be set to where the green line is. The line is placed at 100% of the triangle’s width above the upper border. I will set my stop-loss to the triangle’s lowest point (1.06479). I will avoid trading a bearish breakout from this trend continuation pattern. You can click on the screenshot to see a full-size chart:

AUD/NZD - Symmetrical Triangle Pattern on 4-Hour Chart as of 2020-07-19

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/NZD formation. You can trade it using my free Chart Pattern Helper EA.

Update 2020-07-20 9:52 GMT: Entry level triggered today at 1:04 GMT on widened spreads. The trade’s opening rate is 1.06777 with stop-loss at 1.06479 and TP at 1.07119. Unfortunately, the breakout actually happened to the opposite side of the triangle:

AUD/NZD - Symmetrical Triangle Pattern on 4-Hour Chart as of 2020-07-20 - Post-Entry Screenshot

Update 2020-07-21: Despite a bearish breakout, the currency pair reversed its course and has hit my take-profit level of 1.07062 today at 5:58 GMT:

AUD/NZD - Symmetrical Triangle Pattern on 4-Hour Chart as of 2020-07-21 - Post-Exit Screenshot

If you have any questions or comments regarding this symmetrical triangle on the AUD/NZD chart, please feel free to submit them via the form below.

Leave a Reply

required
required (will not be published)