Psst! If you’re lookin’ for fresh chart patterns on the Loonie, then I’ve got your fix since I have a triangle on NZD/CAD and a channel on GBP/CAD in today’s intraday update.
NZD/CAD has recently been trading sideways while tapering into a point. And in the process, a fresh symmetrical triangle has formed for us to play with. Well, it’s not really perfectly symmetrical, but close enough.
Anyhow, a symmetrical triangle may break either to the upside or the downside, so we don’t really have a strong directional bias on the pair. In fact, it may be prudent to prepare for both an upside and a downside scenario.
Just note that an upside breakout needs to clear 0.9080 on strong bullish momentum before you can chillax. You see, if the pair fails to do that, then there’s a good chance that the breakout may fail and end up being a fakeout. Know what I’m sayin?
A downside breakout, meanwhile, needs to smash past the areas of interest at 0.8760. Although moving lower past 0.8860 would be an early signal that them bears are in control.
After surging higher, GBP/CAD’s bullish momentum ran out of steam. However, bulls ain’t giving up yet, so the pair continued to trade while tilting to the upside.
And if we connect that most recent peaks and troughs, we can see that a fresh ascending channel has formed. And y’all may wanna start lookin’ for an opportunity to go long since the pair is currently testing the channel’s support area at the 1.6550 minor psychological level.
Do note, however, that them moving averages just recently crossed-over into downtrend mode. As such, there’s a risk for a downside channel breakout. So just be ready to bail yo longs if the pair does break lower and then breaks past 1.6440.
In any case, just make sure to practice proper risk management, a’ight?