Quite a few currency pairs are setting up in consolidation-style triangle or wedge patterns ahead of tomorrow’s Chinese Manufacturing PMI data and Friday’s NFP. Chinese PMI has even been a general topic discussed on talk back radio down here today! At least the trend lines from these patterns give us levels to watch for any momentum-based breakout move.
Some of the FX cross pairs will still offer decent sized pip moves even whilst they keep consolidating BUT these moves are best caught during the US session off the 30 min charts.
The usual deal applies with the charts though…if there is a breakout without momentum then the trend lines are adjusted.
E/J 4hr: more of a daily triangle here:
A/U 4hr: hope it’s not another Bear Flag
Cable 4hr: more of a daily triangle here too:
And, not forgetting, the big wedge patterns on the USDX and EURX:
Summary: watch for any momentum-based trend line breakouts on these charts following this week’s high impact data.