Word up, homie! We’ll we taking a stroll down memory lane in today’s intraday charts update since we’ll be checking up on our old setups on EUR/AUD and EUR/JPY. And as usual, we’ll be lookin’ for fresh plays as well.
Way back on October 18, we first identified that there ascending channel on EUR/AUD’s 1-hour chart.
And back then, the channel wasn’t confirmed yet since the pair was hesitating at 1.4960 and had to move higher in order to validate the channel.
And since then, the pair has moved higher for over 360 pips. So if you was gangsta enough to jump in with a long at or somewhere close to 1.4960, then congratulations on bagging some delicious pips. Aww, yeah! We supah fly, yo!
Anyhow, the pair is beginning to approach the channel’s resistance area, which happens to line up with the area of interest at 1.5340. Moreover, stochastic is already signaling overbought conditions and all that.
Today’s play is therefore to wait for resistance to form and then start lookin’ for opportunities to go short while gunning for the channel’s support, which should be at or just above 1.5100.
Going short at an ascending channel’s resistance area is a counter-trend setup and extra risky, though, so only the real gangsta traders among y’all may wanna play it.
And remember, there’s no shame if you wanna play conservatively by staying in the sidelines and waiting for a chance to go long when the pair to test the the channel’s support area.
That there descending triangle on EUR/JPY’s 1-hour chart was also actually identified during October 18’s intraday charts update.
Now, a descending triangle is a bearish chart pattern. But if y’all can still recall, I told y’all back then that EUR/JPY’s descending triangle formed after an uptrend. As such, there’s also a risk that the pair may break to the upside instead. And so I advised y’all to prepare for an upside breakout as well.
As it turns out, that advice was good as gold since the pair staged an upside triangle breakout. Heck, it even took out the key area of interest at 133.50 that I told y’all to keep an eye on.
And if you were able to jump in with a long at the breakout point, at the pullback to 132.50, or at the key area at 133.50 (or any and all of them), then congratulations on harvesting some pips. Aww, yeah! We got bank, dawg.
Anyhow, if we take the most recent price action into account, we can also see that a fresh ascending channel has formed. Moreover, the pair appears to be hesitating above the area of interest at 134.30 while stochastic is signaling overbought conditions and all that.
There’s therefore a chance that the pair may move lower to test the channel’s support area, so get ready for that. Don’t freak out if the pair temporarily stages a downside breakout to test 133.50, though.
But if the pair continues lower and takes out 132.80, then you may wanna start freaking out. And if the pair goes even lower past 132.80, then you definitely need to freak out and bail yo longs. You may even wanna switch to a bearish bias at that point.
In any case, just make sure to practice proper risk management as always, a’ight?