Our stroll down memory lane ain’t done yet since we’ll be checking up on our old setups on NZD/CHF and GBP/JPY in today’s intraday charts update.
We identified that there rectangle pattern on NZD/CHF’s 1-hour chart back on Monday. And back then, one of our scenarios was a possible upside breakout since them moving averages were about to cross-over into uptrend mode at the time.
And as y’all can see, that scenario played out and the pair even cleared the key area of interest at 0.6980 that I told y’all to keep an eye on. As such, we’re now bullish on the pair.
And as y’all can also see, the pair has been trading sideways between 0.7010 and 0.6980, forming what appears to be a bullish flag in the process.
As the name suggests, a bullish flag is a bullish chart pattern. And if the pattern is validated by an upside break past 0.7010, then them bulls will likely be gunning for 0.7080 next.
Do note that there’s also a chance that the pair may pull back instead, though. But we’re still bullish so long as the pair doesn’t smash past 0.6950. So if the pair goes past that, then y’all may wanna think about switching to a bearish bias instead.
If y’all can still recall, we found that there descending channel way back on September 4.
Well, it wasn’t really a fully developed channel since the pair had to move lower from 143.00 and then test the channel’s support area in order to confirm it.
And since the channel wasn’t fully formed yet, I warned y’all that only the most gangsta traders should try lookin’ for a chance to go short. Also, I told y’all that our technical indicators didn’t look right for a downside move since moving averages were in uptrend mode, so I also told y’all to consider an upside move scenario.
Moreover, I told y’all that a move past 143.00 would be a good early sign that bulls are in control, with a break past 144.00 being an even better sign of bullish control.
Well, the pair did move higher and cleared those two key price areas. So if you were able to jump in with long on one or both key levels when they were broken, then congratulations on bagging some pips. Aww, yea!
Anyhow, the pair could still go higher. However, the pair appears to be hesitating at the area of interest at 146.60 already. So today’s play is a Fibonacci retracement play.
And looking at that there chart, the most likely pullback area would be the 50% retracement level since it sits right smack on the 144.00 major psychological level. Although the pair could still potentially move lower to 143.00.
In any case, just make sure to practice proper risk management, a’ight? Also, if the pair moves past 143.00 on strong bearish momentum, then you may wanna bail yo longs if you still have ’em for some reason. You may even wanna think about switching bias.