Yo! Let’s end this week’s intraday chart update with a couple of short-term chart patterns. To be more specific, I’ve got a triangle for EUR/GBP and a channel on USD/JPY.
If you’re a breakout chartist, then check out that there descending triangle on EUR/GBP’s 1-hour chart.
As the name implies, a descending triangle is a bearish chart pattern, so our directional bias is to the downside. And looking at our technical indicators, they seem to favor further moves to the downside since them moving averages are still in downtrend mode. Stochastic, meanwhile, just left overbought territory.
Anyhow, if the pair does break lower past support at 0.8790, then the pair will likely have enough momentum for a 110-pip move.
However, the chance for an upside breakout is always there, so y’all may wanna prepare for a scenario as well. The pair needs to clear both 0.8900 and 0.8940 before the breakout is validated, though.
If riding trends is more your thing, then check out that there ascending channel on USD/JPY.
As y’all can see, the pair has been trending higher while bouncing up and down inside that channel. And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is at or just above the channel’s support area.
And it just so happens that the pair is currently testing the channel’s support at 111.90. Y’all therefore better start looking. And all the more so, given that stochastic is already pointing back up while the 100 SMA appears to be acting as dynamic support.
However, there’s always a slim chance that the channel may get invalidated. So y’all better get ready to bail yo longs if the pair continues moving lower and then takes out 111.10 and 110.60.
Anyhow, just make sure to practice proper risk management, a’ight? Peace! See y’all again next week!