Let’s end this week’s intraday charts update with a couple of short-term channel setups on EUR/GBP and CHF/JPY.
As y’all can see, EUR/GBP has been trending higher for a while now. Not only that, the pair has also been trending higher while bouncing up and down inside that there ascending channel.
The pair is currently grinding lower towards the channel’s support area, which should be at or just above the area of interest at 0.9170. Y’all therefore better get ready to start lookin’ for opportunities to go long on the pair soon.
However, the pair already seems to be hesitating at the mid-channel area. Also, stochastic is already pointing back up after visiting oversold territory, which implies that bullish interest is gearing up. As such, there is a chance that the pair may swing back up without testing the channel’s support area.
Going long at the mid-channel area is extra risky, though, so the more conservative traders out there are advised to wait until a test of the channel’s support area.
And as always, just remember that there’s always a slim risk that the pair may stage a downside breakout. So make sure to prepare for such a scenario as well, especially if the pair smashes past the key price area at 0.9110.
CHF/JPY has been trading with a slightly downward tilt recently, as y’all can see in that there chart. And if connect the most recent peaks and troughs, we can also see that the pair has been moving lower while inside a slightly descending channel.
And as I always say, 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.
Well, check out where the pair is currently at. That’s right, dawg. Y’all therefore better start lookin. And all the more so, given that the pair is about to test the area of interest at the 114.00 major psychological level. Moreover, stochastic is already signaling overbought conditions and all that for a while now.
Y’all may wanna think about bailing yo shorts if the pair moves higher past 114.30, though. And if the pair clears 114.70 on strong bullish momentum, then all shorts are off since that confirms an upside channel breakout and is a sign that bulls are in control.
In any case, just make sure to practice proper risk management, a’ight? Peace! I’m out! See y’all next week!