Yo! Let’s start this week’s intraday charts update by checking up on our old setup on AUD/CHF. Of course, we’ll be lookin’ for fresh plays as well. Also, I’ve got a fresh channel on EUR/JPY that y’all may wanna take a look at.
We found that there ascending channel pattern on AUD/CHF’s 1-hour chart way back on June 20. And unfortunately, the pattern failed to hold up, as y’all can see.
Since the pattern got invalidated, we’re now bearish on the pair. And since the pair appears to be hesitating at the area of interest 0.7375 after pulling back, then that means that the pair may be moving back down again soon. Y’all therefore better start lookin’ for opportunities to short.
Our technical indicators are also supportive of further downside moves since stochastic is already signaling overbought conditions and all that.
Them moving averages, meanwhile, are in the downtrend mode. It even looks like the 200 SMA may act as dynamic resistance.
Just note, though, that the pair failed to smash past the key price area at 0.7320. Y’all may therefore wanna keep an eye on how the pair reacts to that price level when (or if) the pair does get there.
The pair’s failure to clear 0.7320 also means that there’s still a good chance that the pair may try to move back into the channel. As such, y’all may wanna think about bailing yo shorts if the pair moves higher past the 0.7400 major psychological level on strong bullish momentum.
As y’all can see, EUR/JPY’s price action has been tilting to the downside. Also, EUR/JPY’s price action appears contained in the messy descending channel for the most part.
Anyhow, the pair is currently at the channel’s resistance area. In addition, stochastic has been indicating overbought conditions for some time now. Moreover, the pair is currently testing the area of interest at the 125.00 major psychological level.
Given all that, there’s therefore a good chance that resistance will form and that the pair may get sent back down. Y’all better get ready to start lookin’ for a chance to short.
And if the pair does start moving back down again, just make sure to observe how the pair reacts to 123.80 since bulls appear to have entrenched themselves there.
Also, just remember to practice proper risk management as always. Moreover, just keep in mind that you better think twice about yo shorts when the pair continues to move higher past 125.70 since that would confirm that bullish momentum is strong and an upside channel breakout is for real.