Sup, dawg? In today’s intraday charts update, we’ll be checking up on our old setups on EUR/CHF and AUD/JPY from Monday’s intraday charts update.
Were you able to trade any of these pairs? Of course, it goes without sayin’ that we’ll be lookin’ for fresh plays as well.
If y’all can still recall, we identified that there ascending triangle on EUR/CHF’s 1-hour chart back on Monday. And back then, we were mainly lookin’ to go long on the pair. However, I warned y’all that there’s always a slim chance that the pair may break to the downside instead, so I advised y’all to plan for such a scenario as well.
And as y’all can see, the pair apparently chose to break to the downside. It even took out the key price area at 1.1390 that I told y’all to keep an eye on. So if you were able to jump in with a short, either at the breakout point at 1.1460 or at the key area at 1.1390, then congratulations on bagging them pips! We’ve got bank, dawg! Aww, yea!
Anyhow, the pair appears to be hesitating at the area of interest at 1.1270. Moreover, stochastic is already signaling oversold conditions and all that. As such, there’s a chance that the pair may start pulling back.
And if the pair does pull back, then the 50% Fibonacci retracement level seems to be the key pullback area to watch since it lines up with the key price area around 1.1390. Although the pullback could still go as high as 1.1440.
Do note that if the pullback goes beyond 1.1440, then that’s no pullback no more, so y’all may wanna bail yo shorts then. Y’all may even wanna switch to a bullish bias.
But if the pair finds resistance between 1.1440 and 1.1390 and then proceeds to go lower, then them bears will likely be gunning for 1.1170 next. As to why 1.1170 will likely be next, just switch to the higher time frames, such as a weekly chart, and you’ll see what I mean.
Back on Monday, the pair just pushed away from the channel’s resistance area at 88.00, so we were lookin’ to go short while gunning for 86.90.
Well, we got more than that since the pair went as low as 86.30. I ain’t complaining, though (aww, yea). More pips don’t hurt nobody none is what my pappy always told me.
Anyhow, the pair breached the channel’s support area a bit, but them bulls are fighting back to keep the pair contained within the channel. As such, there’s a chance that pair would be climbing back up to rest the channel’s resistance area, which should be at or just above the area of interest at 86.90.
As always, however, there’s a slim chance for an upside channel breakout, so just be ready to bail yo shorts if the pair moves higher past 87.60.
Also note that there’s currently a chance that the pair may stage a downside channel breakout since what appears to be a bearish pennant is forming.
Anyhow, whether the pair respects the channel or validates the pennant, them bears will still likely be gunning for 85.80 and 85.00 next.
In any case, just make sure to practice proper risk management, a’ight?