In today’s trading video, I will show you the power of false breakout patterns. Today, they come from the Forex market and this is what we’ll focus on today.
The main topic of today’s analysis will be the symmetric triangle pattern, which can be spotted on few currency pairs.
The Brazilian real and Mexican peso have both rebounded strongly in recent weeks, but their rallies are starting to diverge with the peso running out of steam and the real gaining momentum. The two heavyweight Latin American currencies were pressured this year as their countries' central banks slashed interest rates, historically deep recessions loomed on the horizon and investors dumped emerging market assets due to the coronavirus crisis. Now, both currencies have surfed the wave of improving global market sentiment and appetite for risky assets, with trillions of dollars of monetary and fiscal stimulus lifting hopes for a quick post-pandemic economic recovery.