The chart pattern fiesta ain’t over yet! In today’s intraday charts update, I’ve got me sights on a channel on AUD/NZD and a bearish flag on AUD/CAD. Check ’em out!
AUD/NZD has recently been trending ever lower while bouncing up and down inside that there descending channel.
And normally, I’d tell y’all to start lookin’ for opportunities to go short on the pair since the pair is currently testing the channel’s resistance area.
However, I ain’t doing that today since support has apparently formed at 1.1060. And since support is so close to the channel’s resistance area, that means that there’s a higher-than-average chance that the pair may stage an upside channel breakout. So watch out if the pair clears 1.1120, since that would validate the upside breakout.
But if the pair continues to move lower past 1.1060, then that likely means that the pair is respecting the channel. And if that happens, then y’all may wanna start lookin’ for a chance to go short on the pair.
Back on November 6, we identified a potential ascending channel on AUD/CAD’s 1-hour time frame, which y’all can still see on that there chart.
And while the pair is still respecting the would-be channel’s support area at 0.9760, we can also see that the pair has been trading sideways in a tight range while respecting resistance at 0.9790.
And since the pair dropped hard before that, the resulting price action gives us a bearish flag pattern to play with.
A bearish flag is, as the name implies, a bearish chart pattern, so if the pair breaks past 0.9760 and then moves lower past 0.9790, then that means that them bears are likely gunning for 0.9600.
However, do note that the potential ascending channel hasn’t been validated yet, so our original setup is also still in play. So if 0.9760 holds as support, then that means that the pair will likely be going up to test the would be channel’s resistance area. Although y’all may wanna keep an eye on 0.9860 since bearish interest seems strong there.
In any case, just make sure to practice proper risk management like always, a’ight?