I’m serving up a chart pattern + Greenback double special in today’s intraday charts update, with a triangle on AUD/USD and a channel on EUR/USD. Get ’em while they’re still fresh, yo!
As y’all can see, what appears to be a symmetrical triangle is forming on AUD/USD’s 1-hour chart.
A symmetrical triangle may either break to the upside or the downside, so we don’t really have a strong directional bias on the pair. Although probability does seem to favor a downside break more at the moment since stochastic is pointing down while them moving averages are in downtrend mode.
Anyhow, if the pair does stage a downside breakout, then the pair needs to take out the key price areas at 0.7740 and 0.7700 before the breakout is validated. Otherwise, the risk remains high that the breakout attempt may fail and end up being a fakeout.
An upside breakout, meanwhile, needs to clear 0.7870 and 0.7910 before y’all can chillax.
In any case, just make sure to practice proper risk management, a’ight?
If you’re less of a breakout chartist and more of a trend rider, then check out what I’ve got on EUR/USD’s 1-hour chart.
That’s right! The pair has been tilting to the downside lately. And if we connect the most recent peaks and troughs, then we get that there descending channel to play with.
And as y’all can see, the pair just recently got rejected when it tested the channel’s resistance area just above the area of interest at 1.1870. Y’all therefore better think quick if y’all wanna jump in with a short or not.
Assuming that bearish momentum is sustained, then them bears will likely be gunning for 1.1720 next, followed by 1.1720.
As usual, however, there’s a chance that the pair may double back and stage an upside breakout. Such a scenario appears unlikely at present, though. But just in case that scenario plays out, then just be ready to bail yo shorts (or even switch directional) if the pair smashes past 1.1950.