I’m serving up a Swissy + chart pattern double special in today’s intraday charts update, with a triangle on USD/CHF and a rectangle on NZD/CHF. Get ’em while they’re still hot!
USD/CHF’s journey to the upside got interrupted when the pair encountered resistance at 1.0030. Them bulls kept going at it, though, so the pair has been forming higher lows.
However, bears appear well entrenched at 1.0030, since any bullish attempts to push past 1.0030 have all failed. And in the process, an ascending triangle has emerged.
An ascending triangle is a bullish forex chart pattern, so our main directional bias is to the upside.
Stochastic is pointing back down, however. Also, the pair failed to touch 1.0030 during the most recent upswing. And those are signs that bears may be beginning to win out, so there’s currently a chance for a downside break.
A downside triangle breakout needs to break past 0.9940 before the break is validated, though. Otherwise, there’s a chance that the breakout may end up a fakeout.
But if the breakout is legit and the pair clears 0.9940, then them bears will likely be gunning for 0.9830 next.
As y’all can see, NZD/CHF has been trading sideways recently while respecting resistance at 0.6940 and support at 0.6890, which gives us a tight 50-pip trading range or rectangle pattern to play with.
If any y’all are lookin’ to trade within the range, then heads up because the pair is about to test the rectangle’s support at 0.6890. Moreover, stochastic is already signaling oversold conditions and all that. Y’all therefore better get ready to start lookin’ for opportunities to go long.
If support holds, then the pair will likely be shooting for the rectangle’s resistance at 0.6940. Although there’s also a chance that the may stage an upside break to 0.6990, given that them moving averages are in uptrend mode and all that.
And while such a scenario appears highly unlikely at this point, there’s also a small chance that support at 0.6940 may fail to hold. In which case, the pair will likely go lower to 0.6840.
In any case, just make sure to practice proper risk management like always, a’ight?