The chart pattern fiesta continues! In today’s intraday charts update, I’m serving up a symmetrical triangle on NZD/USD and a channel on NZD/CHF. Get ’em while they’re still fresh!
NZD/USD has recently been trading sideways recently while appearing to taper into a point. And in the process, a fresh symmetrical triangle has formed for us to play with.
A symmetrical 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.
And if a breakout does occur, then the resulting rally or selloff may potentially have enough momentum for a 120-pip move, based on the height of the forex chart pattern.
The recent trend was an uptrend, though. Also, them moving averages are still in bullish mode. An upside breakout therefore currently seems more probable.
In any case, an upside breakout needs to clear the 0.7300 major psychological on strong bullish momentum. Otherwise, there’s a high risk that the breakout may end up becoming a fakeout. A downside breakout, meanwhile, needs to smash past 0.7190, so keep that in mind as well.
Okay, that there ascending channel on NZD/CHF ain’t exactly fresh since we found it way back on June 13. And if y’all can still recall, the pair was milling about under the area of interest at 0.7010 back then.
And since then, the pair has broken through that level and moved 90 pips higher to 0.7100. However, bears were waiting at 0.7100, and so the pair got sent back down again.
Y’all therefore better get ready to start lookin’ for opportunities to go long since the pair is about to test the channel’s support area. Just note that there’s a chance that the pair may attempt to stage a downside breakout, but bulls will likely be waiting at 0.7010.
But in the unlikely scenario that 0.7010 fails to hold as support, then y’all may wanna think about bailing yo longs (if any) or switching bias if the pair breaks past 0.9650 on strong bearish momentum.
Anyhow, just remember to practice proper risk management, a’ight?