Chart pattern time! For today’s intraday charts update, I’ve got a triangle pattern on NZD/CAD and a channel on AUD/CHF that y’all may wanna check out.
NZD/CAD has been making ever lower peaks recently, which implies that them bears currently have the upper hand. However, them bulls ain’t giving up without a fight and have entrenched themselves at 0.9550. And in the process, a fresh descending triangle pattern has emerged.
A descending triangle is a bearish chart pattern, so our main directional bias is to the downside.
And looking at our technical indicators, they appear to support further downside moves since stochastic is signaling overbought conditions.
Meanwhile, them moving averages are still in downtrend mode, and the 200 SMA may even act as dynamic resistance to boot.
A downside breakout needs to break past 0.9490 on strong momentum, though. Otherwise, the breakout may end up being a fakeout.
Also, there’s still a slim chance that the pair may break to the topside instead. In that case, the pair needs to clear 0.9650 in order to validate the breakout.
If you prefer riding trend over trading breakout, then you may like that there ascending channel on AUD/CHF’s 1-hour chart.
As y’all can see, the pair has been trending ever higher while trapped in that there ascending channel. And presently, the pair appears to have difficulty moving past the mid-channel area, but the channel’s support area is just close by.
Also, the pair appears to be testing the area of interest at 0.7400. There’s therefore a higher-than-average chance that support may form here and send the pair higher again.
Our technical indicators are also lookin’ fine since them moving averages are indicating a healthy uptrend while stochastic is signaling oversold conditions and all that.
As usual, however, there’s always a chance for a downside channel breakout, so y’all may wanna think about bailing yo longs or switching bias should the pair break lower and clear 0.7320.
In any case, just remember to practice proper risk management, a’ight?