Wassup, dawg! It’s a fresh trading week, so let’s start it right with a couple of fresh chart patterns on NZD/CAD and NZD/CHF!
AS y’all can see, NZD/CAD has been trading with a downward tilt while trapped inside that there 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 that out, dawg. That’s right! The pair is currently close to the channel’s resistance area, which should be at or just above the area of interest at 0.8860. Y’all therefore better be ready to start lookin’ for opportunities to go short soon.
As always, do be careful since the chance for an upside breakout is always there, so y’all may wanna bail yo shorts or even switch to a bullish bias should the pair clear 0.9010 after staging an upside breakout.
NZD/CHF has been trading sideways recently. And y’all can see on that there chart, the pair has formed a 90-pip trading range or rectangle pattern, with resistance at 0.6950 and support at 0.6860.
And if any y’all plan to trade within the range, then y’all better get ready soon since the pair is currently approaching the rectangle’s resistance area. And all the more so, given that stochastic is already signaling overbought conditions and all that.
However, them moving averages are about to cross-over into uptrend mode. As such, there’s also a chance that the pair may attempt an upside breakout. So y’all better get ready, especially if the pair clears 0.6980 on strong bullish momentum.
Of course, there’s also a chance that the pair may break to the downside instead. And y’all may wanna prepare for such a scenario as well, especially if the pair smashes past 0.6820. Such a scenario is highly unlikely at present, though.
In any case, just make sure to practice proper risk management should you find a trade based on this or the other chart, a’ight?