I’m ending this week’s intraday charts update with a couple of fresh channels on EUR/CHF and AUD/JPY that the trend riders out there may wanna check out.
EUR/CHF has recently been trending higher while trapped inside that there ascending channel.
And as y’all probably know, 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 close to the channel’s support area.
And it just so happens that the pair is currently hesitating at the channel’s support area. In addition, the channel’s support area lines up rather nicely with the area of interest at 1.1530.
Moreover, them moving averages are in uptrend mode. And it even looks like the 100 SMA may act as dynamic support, which is another technical argument for support to form here and for the pair to bounce higher.
Given all that, y’all may therefore wanna start lookin’ for opportunities to go long.
As usual, however, there’s always a small chance that the pair may stage a downside channel breakout. And a break past 1.1500 would be an early signal that them bears are in control, so y’all may wanna think about bailing yo longs if that happens. And if 1.1470 gets taken out, then that’s a clear sign that bears have the initiative and y’all may even wanna switch to a bearish bias on the pair.
AUD/JPY has been tilting to the downside while bouncing up and down inside a rather big descending channel. And presently, the pair is testing the channel’s resistance area, so y’all may wanna start lookin’ for an opportunity to go short on the pair.
Do be warned, however, that there’s a chance that the pair may temporarily breach the channel to test 88.40 since that’s the closest area of interest. So if that does happen, then just chillax.
However, if the pair continues to move higher, then y’all wanna reconsider our bearish bias, especially if the pair takes out 88.70 since that would invalidate the channel while validating an upside channel breakout.
In any case, just make sure to practice proper risk management, a’ight? Okay, I’m out! See y’all next week!