Word up, peeps! Let close out this week’s intraday charts update by checking up on our previous short-term setups on GBP/JPY and NZD/CAD
If you’re getting a sense of déjà vu when looking at that there chart, then that’s probably because you were able to read up on yesterday’s intraday charts update.
If y’all can still recall, the pair was milling about at 142.50, which happened to be just below the channel’s resistance area. I therefore told y’all to start lookin’ for opportunities to go short. In addition, I also told y’all that if 142.50 holds as resistance, then them bulls will likely be targeting 140.30 next.
Well, check that out, dawg! That’s right! If you took my advice, then you’re probably richer by 150 pips to 300 pips by now, depending on when you took your profits of course. Aww, yea! 150 to 300 pips in less than 24 hours! We got game, dawg!
Anyhow, the pair found support at 140.30 as expected. Chances are therefore good that the pair may move back up again to test the channel’s resistance area, which should be below 142.50.
Going long here is a counter-trend play, though, so only gangsta traders should even think about jumping in while more conservative traders should sit in the sidelines for now.
Also, just note that a strong breach of 142.50 and especially 143.60 would be a sign that them bulls are in control. So if that does happen, then y’all may wanna think about switching to an upside bias.
We found that there channel on NZD/CAD’s 1-hour chart way back on June 5. And back then, we were waiting for the pair to test the channel’s support area so we can jump in with a long.
Unfortunately, the pair never did quite test the channel’s support area, so all we could do was watch as the pair continued to trend ever higher. But if you were gangsta enough to jump in anyway, then congratulations. You da man, dawg!
Anyway, the pair sure took its sweet time, but it’s finally moving back down again. Y’all therefore better get ready to start lookin’ for opportunities to go long if or when the pair reaches the channel’s support area, which should be at or just above 0.9650.
Looking at our technical indicators, however, there may be a chance that the pair will push back up again without reaching the channel’s support area. After all, stochastic is already signaling oversold conditions and all that. The 100 SMA, meanwhile, may potentially act as dynamic support.
In any case, just make sure to practice proper risk management, a’ight?