If trend trading is your thing, then check out today’s intraday charts update since I’ve got a couple of short-term channels on EUR/NZD and AUD/JPY.
EUR/NZD has been trading ever lower recently. And if connect the most recent peaks and troughs, then we can also see that the pair has been trading inside that there descending channel.
The pair is currently gunning for the channel’s resistance area, which should be at or just below 1.6390. Y’all therefore better get ready to start lookin’ for an opportunity to go short on the pair soon.
However, do the pair appears to be hesitating at the mid-channel area already. And it just so happens that the mid-channel area lines up with the area of interest at 1.6310. Moreover, stochastic is already signaling overbought conditions and all that.
As such, there’s also a chance that the pair may start moving lower without ever testing the channel’s resistance area. Going short here is extra risky, though, so conservative traders are advised to wait for a test of the channel’s resistance area.
In any case, if the the pair does start moving back down again, then them bears will likely be gunning for 1.6030 next.
On the flipside, if the the pair just blows past 1.6390 and stages an upside channel breakout, then clearing 1.6520 is an early sign that bulls are in control. Although the breakout ain’t confirmed until 1.6630 is also taken out.
AUD/JPY finally staged an upside channel breakout from the ascending channel that we’ve been playing since way back on August 21.
In fact, you can still see the original channel in that there chart. The last time we tried to play it was back on September 12. Back then, the pair was hesitating at 88.20, so we were waiting for the pair to pull back to 87.50 at least so we can add to our longs.
However, the pair staged an upside breakout instead, which is a real bummer. Oh, well.
Anyhow, if we take the most recent price action into account, we can see that the pair has formed a fresh ascending channel after breakout out from our original channel.
And as it turns out, the pair is currently testing the new channel’s support area. Y’all therefore better start lookin’ for opportunities to go long. And all the more so, given that stochastic is signaling oversold conditions and all that. In addition, the channel’s support area lines up with the area of interest at the 89.00 major psychological level.
Just be ready to bail yo longs or cancel yo long orders if the pair continues to move lower past 88.70 and then 88.20 on strong bearish momentum.
In any case, just make sure to practice proper risk management, a’ight?