I’m mixing it up a bit in today’s intraday charts update, with a rectangle pattern on AUD/NZD and a potential pullback scenario on GBP/CAD.
AUD/NZD has been trading sideways while respecting resistance at 1.0970 and support at 1.0840, which gives us a 130-pip trading range or rectangle pattern to play with.
And if you’re lookin’ to trade the range, then heads up because the pair just recently bounced off the rectangle’s resistance area.
Do note, however, that stochastic is moving back up again after visiting oversold territory. As such, there’s currently a chance that the pair may stage an upside rectangle breakout. So get ready to bail yo shorts and start lookin’ for longs if the pair clears 1.1010 on strong bullish momentum.
But just in case them bulls ain’t in the mood to attempt an upside breakout, then them bears will likely be gunning for the rectangle’s support at 1.0840.
And if that happens, then them bears may get a chance to attempt a downside rectangle break. Although a break ain’t confirmed until the pair takes out 1.0800.
If y’all can still recall, we identified that there ascending channel in GBP/CAD’s 1-hour chart back on Tuesday.
And back then, I warned y’all that there was a risk for a downside channel breakout. And as it turns out, the pair did stage a downside channel breakout.
However, the pair bounced off the key area of interest at 1.6440 that I told y’all to keep an eye on. We’re still bearish on the pair of course. But since the pair failed to take out 1.6440, there’s a chance that the pair may pull back all the way to 1.6550.
And if the pair does that and 1.6550 holds as resistance, then them bears will likely be gunning for 1.6320 and 1.6180 next, assuming there’s enough bearish momentum to smash past 1.6440 of course.
Anyhow, just make sure to practice proper risk management, a’ight?