Yo! I hope y’all are in the mood for more chart patterns ‘coz I’m ending this week’s intraday charts update with a channel on EUR/USD and a double top pattern on EUR/CHF.
EUR/USD has been trading with a downward tilt lately. And if connect the most recent peaks and troughs, we can see that the pair appears to be trapped inside that there descending channel.
And as y’all can also see, the pair is currently testing the channel’s resistance area, which is just below the area of interest at 1.1770.
Y’all therefore better start lookin’ for opportunities to go short. And all the more so since stochastic is pointing back down again without reaching overbought territory, which implies strong bearish interest.
Just make sure to observe how the pair reacts when it reaches 1.1680 since that price area seems to be serving as support. Also, just be ready to bail yo shorts if the pair surges higher and smashes past 1.1840 since that’s a signal that them bulls are in charge.
If y’all can still recall our August 9 intraday chart update, we had a Fibonacci retracement setup on EUR/CHF’s 1-hour chart back then since we were expecting the pair to pull back to 1.1390, which lines up with the 50% Fibonacci retracement level. Although I also warned y’all that the pullback could still go as high as 1.1440.
Well, the pair obviously ignored 1.1390, but it did find selling pressure when it reached 1.1440. So if you were also able to find an opportunity to short, then congratulations on bagging 170+ pips. Aww, yea!
Anyhow, if we take the most recent price action into account, we can see that a double top pattern has apparently formed.
A double top is a bearish pattern, which is obviously in line with our bearish bias on the pair. So if you wanna add to yo shorts, or if you missed shorting at 1.1440, then you better start lookin’ for an opportunity to short.
If or when the pair finally smashes past the pattern’s neckline at 1.1270, then them bears will likely be gunning for 1.1170 and 1.1060 next. However, just note that of the pair doubles back and breaks past 1.1440, then the pattern is invalidates, so you may wanna bail yo shorts then.
In any case, just make sure to practice proper risk management, a’ight?