I’m serving up a Loonie + triangle double special, with a couple of triangles on GBP/CAD and CAD/CHF on today’s intraday charts menu.
GBP/CAD has recently been trading sideways while tapering into a point. And in the process, a fresh symmetrical triangle has formed.
A symmetrical triangle may break either to the topside or the downside, so don’t really have a strong directional bias on that pair. That also means that y’all may wanna prepare for both a topside and a downside scenario.
Looking at our technical indicators, however, it looks like an upside breakout seems more probable for now since them moving averages are still in uptrend mode. Stochastic, meanwhile, is already signaling oversold conditions and all that.
Anyhow, if the pair does break to the topside, then the pairs needs to break past 1.6800 in order to validate the upside break. Otherwise, there’s a high risk that the breakout may end up being a fakeout.
A downside breakout, meanwhile, needs to clear 1.6500. However, it would probably be safer to wait until the pair clears 1.6340 as well before y’all can chillax. After all there’s also that there rising trend line. And the area of interest at 1.6500 is just above that, but 1.6340 is below that. So if 1.6340 is breached then the break past the rising trend line is also broken.
A triangle is also forming up in CAD/CHF’s 1-hour chart. However this one is a descending triangle. And as the name implies, a descending triangle is a bearish chart pattern.
And it looks like bearish is the right directional bias since the pair already broke lower past that rising trend line. In addition, them moving averages are already in downtrend mode while stochastic is signaling overbought conditions all that.
And if the pair does successfully break lower past 0.7800, then the pair will likely have enough momentum for a 150-pip move to the downside. Just make to observe how the pair reacts to 0.7720, however, since that price area has had significant market interest in the recent past, so if them bulls plan to counter-attack, then that’s where they’ll probably be waiting.
Also, do remember that there’s always a slim chance for an upside breakout. So y’all may wanna plan ahead if the pair breaks higher past 0.7950.
In any case, just make sure to practice proper risk management, a’ight?