Let’s close out this week’s intraday charts update with a couple of fresh ascending channels on CHF/JPY and NZD/USD that the trend riders out there may like.
CHF/JPY has been trading with an upward tilt recently. And if we connect the most recent troughs and the most recent peaks, we can see that the pair has been respecting that there ascending channel.
Now, the most conservative way to play an ascending channel is to look for an opportunity to go long the pair when it’s at or close to the channel’s support area.
Unfortunately, the pair is at the channel’s resistance area, so the more conservative traders out there may wanna put sit this one. However, y’all may still wanna put the pair on yo watchlist. After all, stochastic is signaling overbought conditions and all that already, so the pair may be moving back down soon.
And if the pair does start moving back down, then them bears will likely be gunning for the channel’s support area, which should be somewhere between 114.70 and 114.20. The more gangsta traders out there may even wanna try finding an opportunity to short while gunning for those areas. Just remember that shorting inside an ascending channel is kinda risky.
Anyhow, there’s also a slim chance that the pair may stage a downside breakout instead. So y’all may wanna bail yo long if the pair smashes past 113.50.
As y’all can see, NZD/USD recently had a trend change since the pair has already breached that there falling trend line. Moreover, them moving averages are already in uptrend mode. Not only that, the pair has also formed a freshly-minted ascending channel.
Sadly for the more conservative forex traders out there, the pair is currently at the mid-channel area and is still shooting for the channel’s resistance area.
However, stochastic is already signaling overbought conditions and all that, so there’s a chance that the pair may be moving back down again soon.
And if the pair does move back down, then the pair will likely pull back to the channel’s support area, which should be at or just above the area of interest at 0.7210.
As usual, however, there’s always a risk for downside channel breakout, especially since the channel is still fresh. The pair needs to smash past 0.7150 in order to invalidate the channel and show that them bears are in control, though.
In any case, just make sure to practice proper risk management, a’ight? Peace! See y’all next week!