Trend playas out there may wanna check out today’s intraday charts update since I’m serving up a couple of short-term channels on EUR/NZD and AUD/JPY.
A fresh ascending channel pattern has just formed on EUR/NZD’s 1-hour forex chart. And as y’all can see, the pair just recently tested the channel’s support area. Moreover, them moving averages are currently in uptrend mode, with the 100 SMA apparently acting as dynamic support.
Y’all therefore better decide quick if you wanna jump in with a long or not. And if you do find an opportunity to go long, then just make sure to keep an eye on 1.6220 since that served as resistance recently. Also, if y’all zoom out to the higher time frames, then y’all will also see that 1.6220 has significant market interest, so them bulls may have a hard time cracking past it.
And since market interest at 1.6220 appears to be strong, then that means that there’s also a chance that the pair may stage a downside channel breakout. As such, y’all may also wanna prepare for such a scenario, especially if the pair clears 1.6030.
That there descending channel on AUD/JPY ain’t exactly fresh since we first played it way back on August 7 and we bagged us some decent pips back then.
We then played the channel again back on August 9. And if y’all can still recall, the pair hit support at 86.30 and our main play was to wait for a pullback to the channel’s resistance area at the time, which was around the 86.90 price area.
And as y’all can see, the pair did pull back to 86.90 and 86.90 held as resistance before plunging all the way to 85.80, which was one the key areas we were lookin’ at. So if you were able to bag even more pips, then congratulations! We’ve got bank, dawg! Aww, yeah!
Getting back on topic, the pair pulled back up to the channel’s resistance area just below 86.90 since then. And since the channel is still intact, why not play it again?
There’s a chance that the pair could temporarily breach the channel to test the area of interest at 86.90, so don’t be spooked if the pair does that. Although if the pair goes beyond that on strong momentum, then you may wanna start thinking about abandoning ship. And if the pairs goes beyond 87.50, then you really wanna bail yo shorts since that’s a sign that them bulls are in control.
Anyhow, if either the channel’s resistance or the area of interest at 86.90 do serve as resistance, then them bears will likely be gunning for 85.80 and 85.00 next.
In any case, just make sure to practice proper risk management, a’ight?