The chart pattern party continues in today’s intraday charts update, with a channel for CAD/JPY and a rectangle that also looks like a bullish flag for NZD/CAD. Check ’em out, peeps!
NZD/CAD recently surged higher before hitting resistance at 0.9500. However, bulls ain’t ready to give up just yet, so they entrenched themselves at 0.9430. As a result, the pair appears to have formed a rather tight 70-pip rectangle pattern.
Y’all can try to trade with the rectangle if y’all want to. However, just know that the pair could potentially break out at anytime, with an upside breakout being a more probable scenario at the moment, since the pair has been trading above the previous resistance area at 0.9430, which now happens to serve as the rectangle’s support.
And looking at our technical indicators, stochastic is already moving back up after visiting oversold territory. Them moving averages, meanwhile, are in uptrend mode, with the 100 SMA seemingly acting as dynamic support.
In addition, if you take the rectangle and the recent surge higher together, you actually get appears to be a bullish flag pattern. And if that is indeed a flag, then an upside breakout will likely have enough momentum for a whopping 300-pip move.
If trading breakouts ain’t really your thing, then how about that there descending channel for CAD/JPY? And as y’all can see, the pair is currently close to the channel’s resistance area. Y’all therefore better start lookin’ for opportunities to go long. And all the more so, given that stochastic is already signaling overbought conditions and all that.
There’s always a chance for an upside channel breakout, though, so just be ready to bail or even switch trading bias if the pair breaks past 82.20 on strong momentum, a’ight? And as usual, just remember to always practice proper risk management.
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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.