Sup, y’all! I’m mixing it up a bit in today’s intraday charts update, with a channel on AUD/USD and a Fibonacci retracement play on GBP/CHF. Check ’em out, yo!
AUD/USD’s upward push stalled recently. In fact, recent price action on the pair has been making lower lows and lower highs, so much so that a fresh descending channel has formed for us to play with.
And as y’all probably know by now, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at the channel’s resistance area.
Well, check that out, dawg. That’s right! The pair is currently at the channel’s resistance area, so y’all therefore better start lookin’ for an opportunity to short.
And all the more so since the channel’s resistance area lines up nicely with the area of interest at 0.7940. Moreover, stochastic just recently left overbought territory.
Anyhow, if bearish momentum builds up, then them bears will likely be gunning for 0.7880 and then 0.7790 next.
As usual, however, there’s a slim chance that the pair may attempt to stage an upside channel breakout, so make sure to always practice proper risk management and be ready to bail yo shorts or switch bias should the pair clear 0.7970 on strong bullish momentum.
GBP/CHF recently surged higher before pulling back when it got rejected at 1.2840. But will the pair be resuming its upward push soon?
Well, if we apply our handy Fibonacci tool, we can see that the pair is approaching the 38.2% retracement level. And the said level could potentially act as support since it lines up with the area of interest and former resistance area at 1.2630.
Also, stochastic is already signaling oversold conditions and all that. Moreover, the bearish momentum seems to be losing steam already.
There’s still a chance that the retracement could go deeper, though, perhaps as low as 1.2560, which sits right smack at the 50% retracement level.
But if the pair goes beyond that, however, then that’s a clear sign that bears are in control so y’all may wanna bail yo long then, if you have any.