I’m ending this week with intraday charts update with a channel pattern + Kiwi double special, with NZD/USD and NZD/CHF in focus.
NZD/USD has been trading with a downward tilt recently. And if we connect the most recent peaks and troughs, we can also see that the pair has been respecting that there descending channel.
Most of y’all probably know what I’m gonna say next, but I’m still gonna say it anyway (for the newbies). One of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
And lucky is since the pair is close to the channel’s resistance area, which should be just above 0.7310, although the pair could still go as high as 0.7340 since both 0.7310 and 0.7340 are price areas with rather significant market interest.
Lookin’ at our technical indicators, they’re lookin’ fine as well since stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, are still in downtrend mode and it looks like the 100 SMA may even act as dynamic resistance.
And while the chance for an upside channel breakout is rather low at present, the risk is always there, so just be ready to bail yo shorts if the pair rushes past 0.7370 on strong bullish momentum. Y’all may even wanna switch to a bullish bias then.
NZD/CHF has also been trading ever lower while trapped inside a descending channel, as y’all can see. And presently, the pair is making its way towards the channel’s resistance area, which is around the area of interest at 0.7050.
However, stochastic has already reached overbought territory. Also, the pair appears to be hesitating at the mid-channel area, which is close to the area of interest at 0.7030.
As such, there’s a chance that the pair may move lower without ever testing the channel’s resistance area.
Going short when the pair has yet to test the channel’s resistance area is kinda risky, though, so only the more gangsta traders out there should even bother to try.
In any case, just make sure to practice proper risk management, a’ight? Also, keep in mind that the channel is invalidated and an upside breakout is confirmed should the pair clear 0.7090.