Sup, peeps! I’m kickstarting this week’s intraday charts update with a Loonie + chart patterns double special, with a triangle on NZD/CAD and a channel (within a channel) on CAD/CHF.
NZD/CAD has recently been trading sideways while tapering to point, forming that there symmetrical triangle that the breakout chartists out there may wanna check out.
A symmetrical triangle may break either to the upside or the downside, as y’all should know by now. And as such, we don’t really have a strong directional bias on the pair.
Just know, though, that an upside breakout needs to clear 0.9080 before the breakout is confirmed. A downside breakout, meanwhile, needs to smash past 0.8760.
And for the real gangsta traders out there who are planning to trade within the range, just know that the pair is currently testing the triangle’s resistance area, which happens to line up with the area of interest at 0.9010. Moreover, stochastic is signaling overbought conditions and all that.
There’s therefore a good chance that them bears will try to block any upside breakout attempts while sending the pair lower with the target being the triangle’s support around the 0.8860 price level.
Way back on October 4, we identified that there descending channel on CAD/CHF’s 1-hour chart. And back then, the pair was hesitating at the 0.7800 major psychological level.
Since then, however, the pair opted to continue trading sideways while still respecting the channel. Also, if we take the most recent price action into account, we can see that a fresh ascending channel appears to have formed.
And since the pair is currently testing the old descending channel’s resistance area, it may soon be make-or-break time for the pair.
This gives us two scenarios. The first is that the pair respects the older descending channel and moves back down, staging a downside breakout from the newer ascending channel, with 0.7720 being the initial target.
The second scenario, meanwhile, is that the pair respects the newer ascending channel, staging an upside breakout from the older descending channel in the process. And if that happens, then the pair will likely try to clear clear 0.7850 and then 0.7900.
Anyhow, whichever scenario you wanna play (you can also prepare for both), just make sure to practice proper risk management, a’ight?