For this week’s final intraday charts update, breakout chartists may like the descending triangle I’ve got on EUR/USD while trend riders may prefer the channel pattern on CHF/JPY.
As y’all can see, the pair has been making lower peaks since the pair found resistance at 1.1250. This means that them bears have gotten the upper hand. However, them bulls ain’t giving up just yet and have entrenched themselves at 1.1170. And in the process, a fresh descending triangle has formed on EUR/USD’s 1-hour chart.
A descending triangle is a bearish chart pattern, so we’re mainly lookin’ to go short on the pair. And if a downside breakout does occur, then them bears would likely be gunning for 1.1090 initially, although further moves to the downside is possible if bearish momentum is strong enough.
Looking at our technical indicators, however, we can see that stochastic is already signaling oversold conditions and all that. Meanwhile, them moving averages are still in uptrend mode. In addition, it looks like the 200 SMA may act as dynamic support. As such, there’s also a chance for an upside breakout. Y’all therefore better keep an eye on 1.1250 since a breach past that invalidates the triangle and signals that them bulls may be in control.
If playing breakouts ain’t your style and riding trends is more your thing, then check out that there ascending channel on CHF/JPY.
As y’all can see on that there chart, the pair is currently making its way lower towards the channel’s support area. Y’all therefore better get ready to start lookin’ for opportunities to go long soon.
Do note, however, that the pair already appears to be hesitating at the mid-channel area. Moreover, stochastic is already signaling oversold conditions and all that. There is therefore a chance that the pair may move back up again without first testing the channel’s support area.
Anyhow, looking for a chance to go long at the mid-channel area is only for the gangstas traders out there. For the more conservative traders, y’all may still wanna wait for a test of the channel’s support before going long. And whether you’re the gangsta type or the conservative type, just remember to always practice proper risk management, a’ight?
Forex Chart Settings:
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.