I’m serving up a Swissy + chart pattern double special in today’s intraday charts update, with CHF/JPY and NZD/CHF in focus.
What appears to be an ugly double bottom pattern has formed on CHF/JPY’s 1-hour chart recently.
Currently, the pair is testing the forex chart pattern’s neckline at 114.50. And if the pair confirms the chart pattern by moving higher past 114.50, then a move past 114.70 likely means that them bulls are in command and are gunning for 115.60.
Do note, however, that stochastic is signaling overbought conditions and all that already. There’s therefore a chance that the chart pattern may get invalidated. And if that happens, then bears will likely be shooting for sipport at 113.50.
Okay, gonna keep it real with y’all. That there descending channel on NZD/CHF’s 1-hour chart ain’t exactly new because we first played it way back on November 3.
Back then, the pair was hesitating at the area of interest at 0.6920, so we were looking to go short on the pair. However, I also warned y’all back then that the pair may still move higher to test either 0.6950 or 0.6980, which is what the pair did. Everything’s chill, though, since the pair didn’t breach 0.6980.
Anyhow, the pair has moved lower to 0.6810 since then. So congratulations if you were able to ride the downswing. The pair has yet to test the channel’s support area, so the pair likely has room to move even lower.
However, the pair is currently hesitating at the area of interest at 0.6810. Ans since stochastic is already signaling oversold conditions and all that, there’s a chance that the pair may pullback to allow us to go short again.
As to where the likely pullback area will be at, 0.6880 seems like the price area to watch since it’s the closest price area that has seen significant interest in the recent past.
Just be ready to bail yo shorts if the pair continues to move higher and takes out 0.6950, though, since that means that bulls are likely in control and attempting an upside channel breakout.
In any case, just make sure to practice proper risk management, a’ight?