For today’s intraday charts update, I’ve got a fresh symmetrical triangle for GBP/CHF and a descending channel for NZD/JPY on the menu. Get ’em while they’re still fresh, yo!
GBP/CHF has recently been trading sideways while tapering into a point. As a result, a fresh symmetrical triangle pattern has emerged for us to play with.
A symmetrical triangle means that them bulls and bears are trying to bum rush each other, but neither side has a clear advantage. As such, the pair could potentially break either to the topside or the downside. Y’all therefore better prepare for both scenarios.
And should a breakout occur, then the resulting rally or selloff could potentially last for about 130 pips or so. Just make sure y’all keep an eye on how the pair reacts to 1.2580 if there’s an upside breakout. If the pair loses momentum at or just before reaching 1.2580, then chances are good that the upside breakout may end up being a fakeout. For a downside breakout, meanwhile, y’all may wanna keep an eye on 1.2440.
NZD/JPY has been steadily trending lower while mostly contained in that there descending channel.
As I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go short near the channel’s resistance area. Unfortunately, the pair has already pushed away and making its way back down.
Y’all may still wanna put this pair on your watchlist, though. After all, stochastic is already signaling oversold conditions and all that. There’s therefore a chance that the pair may be going back up again to test the channel’s resistance area. Anyhow, just remember to practice proper risk management if you do find a trading opportunity, a’ight?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.