I’m mixing it up a bit in today’s intraday charts update ‘coz I’ve got a pullback setup on EUR/CAD and a triangle pattern on GBP/NZD.
If y’all can still recall, we found that there ascending channel on EUR/CAD’s 1-hour chart way back on June 30. And back then, I told y’all that there was a chance that them bears may attempt a downside channel breakout past 1.4740 while the pair was about to test the area of interest at 1.4850.
Well, take a look at that there chart, dawg. That’s right. The pair did stage a downside breakout. And while them bears initially hesitated at 1.4740, they mustered enough strength to smash past it later.
However, the pair later found fresh buyers at 1.4660 and began pulling back 1.4740. Today’s play is therefore to look for opportunities to go short on the pair on the expectations that 1.4740 would hold as resistance and that 1.4660 would fail as support.
Looking at our technical indicators, we can already see that them moving averages are in downtrend mode while stochastic moved back down without ever visiting overbought territory and all that, which is a sign of strong bearish interest.
Anyhow, if 1.4740 holds as resistance and 1.4660 is cleared, then them bears will likely be gunning for 1.4520 next. Just note, though, that it’s game over for yo shorts if the pair disregards 1.4740 and moves higher past 1.4850.
GBP/NZD has recently been trading sideways while tapering into a point, forming that there symmetrical-ish triangle in the process.
A symmetrical-ish triangle pattern means that bulls and bears are fighting it out but neither side has a clear advantage. As such, the pair could break either to the upside or the downside, so we don’t really have a directional bias on the pair.
Just note that an upside breakout needs to clear 1.7900 on strong bullish momentum before you can chillax. Otherwise, the breakout may end up being a fakeout.
A downside breakout, meanwhile, needs to smash past both 1.7680 and 1.7630, so them bears have got a lot of work to do if they wanna stage a breakout.
In any case, just make sure to practice proper risk management, a’ight?