The Bearish Engulfing pattern sees the Engulfing candle (red candle), break the high & the low of the previous candle & close below the low.
Look for it in an uptrend at resistance as it is a potential reversal or in the correction phase of a downtrend as a potential continuation signal.

On the back of positive employment data, we saw a huge influx of CAD buyers on Friday.

Looking at AUD/CAD, we see that price made a false break of the top of the range at 0.92300.

We can also see a bearish engulfing candle which shows the market sentiment at that time.

Will we see the momentum continue? Possibly back to 0.9070.

CAD/CHF - We saw a strong move from all CAD pairs on Friday after the positive employment data.

We may possibly see a correction now for CAD/CHF.

Looking to the left, 0.5789 could be an area to watch which acted as support through July and August.

CHF/JPY - The bigger picture shows that the buyers are in charge and that the correction may have just ended.

Look for buy setups that meet your strategy rules if you agree.

Do you know how to use the Fibonacci retracement tool? Here's a quick guide on where to use it and what to look for.

Use in a trending market (uptrend or downtrend) and draw the Fib from the start of the impulse to the end of it.

Use the Fib retracement levels (38.2%, 50%, 61.8% and 78.6%) as potential levels where price may pull back to before seeing the next impulse in the trend.

Targets are the Fib extension levels (-27% Fib and -61.8% Fib).

We can see by examining the weekly chart for over a year, price is in a steady incline.

What's also noticeable is the recent rejection of 2.2900 close to the trendline.

We may see price test the 2.2900 zone again and if it rejects, a possible push from the buyers.

Look for a trade that meets your strategy rules.

EUR/AUD Daily - After 4 attempts, price broke and closed below the 1.7600 barrier.

The bigger picture has the appearance of a Head & Shoulders pattern with the 1.7600 support zone acting as the neckline.

We are now seeing price retest the level. Will we see a continuation down or a false break?

NZD/JPY Daily - The bullish trend continues since it printed it's low on 17th November 2025.

With the trendline intact, we may see price react on the trendline itself or possibly the 50% Fib retracement.

Look for a trade that meets your strategy rules.

Using a Stochastic Oscillator

1- Identify a trend
2 - To increase the chance of a successful trade (with the trend), look at buying only when the stochastic goes below the oversold zone).
The green arrows on the chart highlight where price corrected and the green arrows on the stochastic highlight an oversold condition.
The red X doesn't count as we see a trend change.

With a steady flow of buying in play, EUR/USD is approaching the bullish trendline.

If the trend is going to continue, a couple of options to look out for are a bounce off the trendline or possibly a rejection of the 61.8% Fib level.

Whatever you think, look for a trade that meets your strategy rules.

In the Autumn we saw USD/CAD test the 1.3730 zone on three separate occasions. All three times price rejected the area.

Now we see price at the same zone and is initially rejecting again.

Will we see a rejection for a 4th time?

NZD/CAD

Price broke out of the descending channel on 26th November this year.

We then saw a correction take place and price is now potentially breaking out for another bullish impulse.

Look for a trade that meets your strategy rules.

As the holiday season is upon us, we wanted to take a moment to extend our warmest wishes to you. This year has been filled with market twists and turns, and we sincerely appreciate your trust and partnership.

May your profits soar like a bull market and your losses be as fleeting as a bearish trend. Here's to a prosperous and successful year ahead, filled with pips, profits, and positive trends! 📈🎄

To increase the chance of success in trading with the trend, we can look at potentially selling only when the stochastic goes above the over bought zone (above 80).

The red arrows on the chart highlight where price corrected and the red arrows on the stochastic highlight an overbought condition.

Traders can see charts in different ways.

For every buyer, there's a seller or maybe you use moving averages and another trader refuses to use them.

Respect each others strategies and ways of trading. If it works for you then that's all that matters.

Check out some of these common reversal patterns that you might see in the Forex markets.

Choosing good risk to reward trading setups could help you become a successful trader in the markets. This may be something that you implement into your own trading strategies.

The upwards trajectory of Gold is clear for everybody to see, however there is something of interest to notice.

With price making higher highs but the MACD showing divergence (printing lower highs), could we be in store for a correction?

Also note the rising wedge pattern, typically seen when a bullish trend is running out of steam.

For the moment buyers are still in charge.

Whatever your opinion, look for a trade that meets your strategy rules.