Sup, dawg! I’m serving up a couple of fresh chart patterns for the Aussie in today’s intraday charts update, with a triangle on AUD/CAD and a channel on AUD/NZD on the menu.
AUD/CAD has recently been trading sideways while tapering into a point, giving us that there symmetrical triangle to play with.
A symmetrical triangle could break either to the upside or the downside, so we shouldn’t really have a strong directional bias. And since the pair could potentially break either way, y’all may wanna prepare for both an upside and a downside scenario.
Looking at our technical indicators, however, we can see that them moving averages are in downtrend mode. Stochastic, meanwhile, is already pointing back down after reaching overbought territory. As such, there’s currently a higher chance for a downside move.
And if the pair does break to the downside, then just know that the pair needs to smash past the 0.9700 major psychological level. Otherwise, the risk remains high that the breakout may end up being a fakeout. Know what I’m sayin?
Again, however, the pair could also break to the upside. In that case, the pair needs to clear 0.9810 on strong bullish momentum.
If y’all can still recall, we had an ascending triangle on AUD/NZD’s 1-hour chart back on September 8.
And back then, we considered the possibility of a downside break, although we didn’t really think it was likely. But as y’all can see, the pair did break the downside.
And while the pair did reach the key price area at 1.1010 that I told y’all to keep an eye on, 1.1010 held and pair got rejected. And since then, the pair has climbed back up and is currently stalling at the area of interest at 1.1080.
Now, if we take the most recent price action into account, we can see that the pair has formed that there fresh descending channel. And it just so happens that the pair is currently at the channel’s resistance area.
Moreover, our technical indicator are also lookin’ fine, with them moving averages in downtrend mode and stochastic signaling overbought conditions and all that. Y’all therefore better start lookin’ for an opportunity to go short on the pair.
And if the pair does start moving lower, then just be sure to keep an eye on how the pair reacts to the area of interest at 1.1010, since them bulls appear to have entrenched themselves there.
Also, just keep in mind that if the pair climbs past 1.1140, then that means that them bulls are in control and y’all may wanna think about bailing yo shorts.
In any case, just make sure to practice proper risk management, a’ight?