Yo! Let’s end this week’s intraday charts update with a couple of fresh, short-term chart patterns on NZD/JPY and USD/USD.
Is NZD/JPY gearing up for a downside move? Well, there’s currently a higher-than-average chance that the pair may mover lower. After all, what appears to be a rising wedge pattern has now emerged on NZD/JPY’s 1-hour chart.
The pair needs to break past 78.40 on strong bearish momentum before the breakout is validated, though.
But if the downside breakout does get validated, then them bears will likely be gunning for 77.60 next. Heck, if bearish momentum is strong enough, then the pair may even find itself at 76.70.
As with all chart patterns, however, there is always a chance that the pair may stage a breakout in the opposite direction. As such, y’all may wanna bail yo shorts or even switch bias should the pair clear 79.30 on solid bullish momentum.
If you’re more of a trend rider rather than a breakout chartist, then check out that there descending channel on AUD/USD.
As y’all can see, the pair is currently making its way towards the channel’s resistance area. Y’all therefore better get ready to start lookin’ for opportunities to go short soon.
And all the more so, given that stochastic is already signaling overbought conditions and all that. Also, there’s a chance that either the 100 SMA or the 200 SMA may act as dynamic resistance.
Bullish momentum seems rather strong, though, so y’all better wait until resistance does form. And if resistance fails to form and the pair smashes past 0.7470, then that means that them bulls are in control, so y’all may wanna cancel or bail out of yo short orders. In any case, just make sure to practice proper risk management, a’ight?