I’m serving up a couple of fresh short-term channels on USD/JPY and GBP/AUD in today’s intraday charts update.
As y’all can see, USD/JPY recently broke to the upside of that there falling trend line and then promptly began trading higher while trapped inside that there ascending channel.
We’re obviously bullish on the pair, so we’re waiting for a chance to jump in with a long when the pair retests the channel’s support area.
And chances are good that the pair may be moving back down soon since the pair appears to be hesitating at the channel’s resistance area.
And it just so happens that the channel’s resistance area lines up rather nicely with the area of interest at 113.40. Moreover, stochastic will soon be reaching overbought territory.
If or (when) the pair does start to move back down, then bears will likely be gunning the channel’s support area at or just above 112.50. That’s some decent pips away, so gangsta traders may even wanna go short here. Do note, however, that shorting inside an ascending channel is extra risky, so more conservative traders are advised to wait for a chance to go long instead.
Also, do note that if bearish momentum is so strong that the pair stages a downside breakout and then clears 111.80, then y’all may wanna think about bailing yo shorts or even switching to a bearish bias.
We’ve got another fresh ascending channel, this time on GBP/AUD’s 1-hour chart.
As y’all can see, the pair has been trading higher while bouncing up and down inside that there chart. Now, y’all know that the most conservative way to play an ascending channel is to look for a chance to go long when the pair is at the channel’s support area. And that certainly applies in this case. After all, stochastic is already in uptrend mode.
But as y’all can see on the left of the pattern, the previous trend was a downtrend, so it’s possible that this channel is just a consolidation before the next move lower.
As such, y’all may wanna keep an eye on 1.6800 since a breach past that means that them bears are in control and trying to resume the downtrend. And as always, just make sure to remember to practice proper risk management, a’ight?