Yo! I hope y’all are still in the mood for even more chart patterns ‘coz I’m serving up a couple more, with EUR/NZD and EUR/CHF in focus.
The pattern wasn’t validated back then, but I told y’all that of the pair breaks that there rising trend line, then that will be an early sign that them bears are trying to complete the pattern but that the pattern ain’t validated until the pair moves lower past 1.6850.
And since then, the pattern has been validated and the pair even took out the key area of interest at 1.6750 that I told y’all to watch. So if you were able to ride the pair, then congratulations for bagging some pips. Aww, yeah!
Anyhow, the pair is about to test the broken area of interest at 1.6750. Y’all therefore better get ready to start lookin’ for opportunities to go short on the pair. And all the more so, given that stochastic is signaling overbought conditions and all that. Also, the 100 SMA may even act as dynamic resistance.
If 1.6750 holds, then’s it’s very likely that them bears will be gunning for 1.6140 next, which is a whole lot of pips away. Just be ready to bail yo shorts if the pair moves higher and takes out 1.6850, though, since that’s a sign that bulls are beginning to win out or bears are running out of steam.
A falling wedge pattern has formed on EUR/CHF’s 1-hour chart after the pair trended higher for a while, which means that the pair will likely break to the topside sooner or later and continue the uptrend.
And a breach past 1.1620 would be the earliest signal that the pair is attempting an upside breakout. However, the pair needs to clear 1.1660 to actually validate the breakout since that’s above that there rising trend line, which means that bulls are in control.
And while it’s not a very likely scenario, y’all may wanna prepare for the possibility that the pair may break to the downside instead. After all, stochastic is pointing back down again, which could mean that bears have wrestled control for now.
Anyhow, a move past 1.1550 would be an early sign that them bears are attempting a downside breakout. But a downside breakout would only be confirmed if the pair smashes past 1.1520 on strong bearish momentum.
In any case, just make sure to practice proper risk management like always, a’ight?