We’ll be taking a stroll down memory lane in today’s intraday charts update since we’ll be checking up on our old setups on AUD/CHF and EUR/NZD. Of course, we’ll be lookin’ for fresh plays while we’re at it.
If y’all can still recall last Friday’s intraday charts update, we were lookin’ to go short on the pair if 0.7375 held as resistance. Unfortunately, 0.7375 failed to hold as resistance.
Fortunately, however, there was no follow-through buying after the pair tested the key area at 0.7400 that I told y’all to keep an eye on. In fact, there was follow-through selling, and plenty of it, which validated our bearish bias. Aww, yea!
The pair then hesitated a bit at 0.7320, the other key area I told y’all to keep an eye on, before continuing its journey to the downside.
So if you were able to profit from this setup, then congratulations ‘coz we got bank. Aww, yea!
Anyhow, the pair found buyers again before reaching the next area of interest at 0.7270. Heck, the pair even got pushed back to the broken support at 0.7320, which gives us a nice break-and-retest setup.
If resistance forms at 0.7320, then them bears will likely be gunning for 0.7160 next. Just make sure to keep an eye on how the pair reacts to 0.7270. Make sure to keep an eye on 0.7220 as well since that price area has seen some market interest in the recent past.
Also, if the pair moves higher to 0.7350, then y’all may wanna start thinking about bailing yo shorts since that’s a sign that them bulls may be in control and trying to invalidate the trend change.
We identified that that there descending channel in June 19’s intraday charts update.
And back then, I already warned y’all that channel patterns are generally considered as trend continuation forex chart patterns, but price action on EUR/NZD indicates that there was a higher-than-average chance for an upside breakout.
Well, guess what, dawg. That’s right! That’s exactly what happened, as y’all can see on that there chart, so give yo self a pat on the back if you managed to ride the breakout move.
Having said that, I also noted back then that the pair needs to clear both 1.5490 and 1.5650. The pair cleared 1.5490 easily enough, but it found sellers a 1.5650.
We’re still bullish on the pair, though. And if we apply our Fibonacci tool, we can see that the pair pulled back close to the 50% retracement level when it retested 1.5490 after breaking it.
If bullish momentum build up and the pair smashes past 1.5650, then bulls will likely be shooting for 1.5850 and then 1.6130 next.
As usual, however, y’all may wanna bail yo longs if the pair closes below 1.5490 and you may even wanna think about switching bias if the pair goes below 1.5350. In any case, just remember to practice proper risk management, a’ight?