Yo! If you’re lookin’ for more short-term setups on the Kiwi, then I’ve got your fix, with a channel on NZD/JPY and a triangle pattern on AUD/NZD. Check out what I’ve got, dawg!
First up on today’s intraday charts update is that there fresh ascending channel on NZD/JPY’s 1-hour chart.
The pair is currently bouncing off the channel’s resistance area, though. As such, conservative traders may wanna sit this one out for a bit until the pair tests the channel’s support area, which should be at or just above 79.30.
Of course, if you’re really gangsta then you can try shorting here and gunning for 79.30. And all the more so, given than stochastic is already signaling overbought conditions and all that.
Going short in a downtrend is extra risky, though, so just keep that in mind and make sure to practice proper risk management, a’ight?
And as always, there’s a slim possibility for a downside channel breakout, so y’all may wanna think about bailing yo longs or even switch bias if the pair smashes past 78.80 on strong bearish momentum.
If you’re more of a breakout chartist rather than a trend rider, then check out that there symmetrical-ish triangle on AUD/NZD’s 1-hour forex chart.
A symmetrical-ish triangle could potentially break out either to the topside or the downside. As such, we don’t really have a directional bias on the pair.
Looking at our technical indicators, however, they do seem to favor a downside breakout for now. Stochastic, for one, is already indicating overbought conditions and all that. Them moving averages, meanwhile, are actually oscillating, although they’re currently in downtrend mode.
Anyhow, just keep in mind that a downside breakout needs to clear the key area at 1.0390. Otherwise, there’s a good chance that the breakout may end up as a fakeout. Know what I’m sayin? As for an upside breakout, it needs to break past 1.0520 on strong bullish momentum before the breakout is validated.