For this week’s final intraday charts update, I’ve got a couple of channels on NZD/CAD and EUR/CAD that y’all might wanna check out.
If y’all can still recall, we found a descending triangle on NZD/CAD’s 1-hour chart back on June 20. And since then, the pair had a false breakout to the topside before crashing back down and breaking to the downside. However, the pair failed to break the key area at 0.9490 that I told y’all to keep an eye on. In fact, that’s where the pair is currently at.
Anyhow, if we take the most recent price action into account, we can see that the pair has formed a fresh descending channel.
Okay, gonna be real with y’all. That there is only a potential descending channel since the pair has to move back up before the channel is confirmed.
And it just so happens that would-be channel’s support area sits right smack on 0.9490, which is where the pair is at, as mentioned earlier. There’s therefore a good chance that the pair may move back up to validate the channel.
Do note, however, that going long here is a counter-trend play, so only gangsta traders should even consider jumping in. More conservative traders, meanwhile, may wanna sit this one out for now.
Also, the pair should go no higher than 0.9650. If the pair goes beyond that, then the would-be channel gets invalidated, although the pair needs to clear 0.9710 before y’all may wanna think about switching to a bullish bias on the pair.
EUR/CAD has been trading higher after finding support at 1.4740. And in the process, a fresh ascending channel has formed for us to play with.
And as I always say, one of the more conservative ways to play is to find opportunities to go long when the pair is close to the channel’s support area. Well, take a look at where the pair is at right now. That’s right. Y’all better start lookin’ for a chance to jump in then.
However, just note that there’s a chance that them bears may attempt a downside channel breakout past 1.4740. Also, make sure to keep an eye on how the pair reacts to 1.4850.
If the pair seems to hesitate when it gets to 1.4850, then that could be a sign that them bears are getting ready for a downside breakout, so you may wanna tighten your stops if that happens. But if the pair just sails past 1.4850, then that means that bulls are likely gunning for 1.4980 next.
In any case, just make sure to practice proper risk management, a’ight? Peace! And see y’all next week!