Word up, dawg! In today’s intraday charts update, we’ll be checking up on our old channel setups on EUR/GBP and EUR/NZD. And as usual, we’ll be lookin’ for fresh plays as well.
We found that there ascending channel on EUR/GBP’s 1-hour forex chart back on August 25. And if y’all can still recall, we were waiting for the pair to test the channel’s support area, which was around 0.9170 at the time.
However, I also noted that the pair was hesitating at the mid-channel area. As such, I pointed out that there was a chance that the pair may swing back up without testing the channel’s support area, although I also warned that going long at the mid-channel area is extra risky, so only the gangsta traders should try it.
Well, the mid-channel area, which was around 0.9200 at the time, did hold and the pair moved higher for 100 pips since then. So if you were gangsta enough, then congratulations on bagging some pips. Aww, yea!
And since the channel is still intact, why not play it again? You know what them old folks say, right? If life gives ya lemons, then go and make lemon donuts or some such. I can’t really remember.
Anyhow, the pair is about to test the channel’s support area, which should be at or just above 0.9200. Y’all therefore better start lookin’ for opportunities to go long. And all the more so, given that stochastic is already signaling oversold conditions and all that.
Do keep in mind, though, that there’s always a chance for a downside channel breakout. So better start planning how to react if the pair clears 0.9170 on strong bearish momentum. And if the pair clears 0.9130, then all short bets are off and y’all may wanna change bias then since that’s a sign that bears are in control.
We initially had a rising trend line play on EUR/NZD’s 1-hour chart way back on August 22. However, we scored us some decent pips just a day later, and so we reanalyzed the situation and all that and found that there ascending channel way back on August 23.
We tried to play that channel by waiting for the pair to dip to 1.6220, but if y’all can still recall, I also told y’all that them bulls were likely shooting for 1.6520.
Well, that pullback never quite happened, which is rather unfortunate. But if you were able to ride the initial swing higher from our August 22 setup, then congratulations because 1.6520 was hit and then some.
For today’s play, we’re also playing that channel again since the pair appears to be grudgingly moving lower after testing the channel’s resistance area. As to where the pair will likely pull back towards, that’s 1.6390. So y’all better make sure to keep an eye on that price area.
As for the invalidation area, the pair has to breach both 1.6220 and then 1.6030 before the channel is deemed invalidated and a downside channel breakout is confirmed.
In any case, just make sure to practice proper risk management, a’ight?