I’m mixing it up a bit in this week’s final intraday charts update, with a channel setup on CHF/JPY and a Fibonacci retracement play on AUD/NZD.
There’s a better-than-average chance that CHF/JPY may be moving back up again soon.
After all, the pair is currently testing that there descending channel’s support area. And the channel’s support area happens to line up rather nicely with the area of interest at 113.80. Moreover, stochastic us moving back up again after having reached oversold territory.
Just note, however, that looking for opportunities to go long here is a counter-trend play and extra risky. So only the real gangsta traders may wanna do that.
But if the pair does move back up, then them bulls will likely be gunning for the pair resistance area, which should be somewhere around 115.00 and 114.70.
Of course, there’s always a small chance for an upside channel breakout. Although the pair needs to take out 115.60 before the topside breakout is confirmed.
No fancy forex chart patterns here! What we have here is a retracement setup after AUD/NZD cleared resistance at 1.1140.
Basically, we’re looking at a classic break-and-retest in that we’re waiting for the pair to retest the broken resistance area, so that we can jump in with a long.
And if we use our handy Fibonacci tool, we can see that the broken resistance area at 1.1140 happens to sit right smack on the 38.2% retracement level, so that’s the key level to watch.
In addition, the pair is already approaching 1.1140 and 200 SMA may even act as dynamic support. And did I mention that stochastic is already signaling oversold conditions and all that?
Anyhow, there’s always a risk that the pullback may be deeper, so don’t be too surprised if the pair goes all the way down to 1.1090 before moving back up again.
But if the pair goes lower than that and smashes past 1.1050, then all bullish bets are off since that’s an early sign that bears are in control.
In any case, just make sure to practice proper risk management as always, a’ight? Peace! I’m out! See y’all again next week!