I hope y’all are ready for more chart patterns, ‘coz I’m serving up a couple more in today’s intraday charts update. This time, I’ve got a descending channel on EUR/AUD and a descending triangle on NZD/CAD. Check ’em!
EUR/AUD has recently been moving lower while trapped inside that there descending channel. And presently, the pair is about to test the channel’s resistance area, which should be at or below the area of interest at 1.4630.
Y’all therefore better get ready to start lookin’ for opportunities to go short. And all the more so, given that stochastic is already signaling oversold conditions and all that. Moreover, them moving averages are indicating a healthy downtrend. And it even looks like as if the 100 SMA may act as dynamic resistance.
As always, there’s always a slim chance that the pair may break to the topside instead, so just be ready to bail yo shorts or even switch to a more bullish bias if the pair clears 1.4700 on strong bullish momentum.
Oh, also remember to practice proper risk management, a’ight?
Bears have been winning out on NZD/CAD, so the pair has been steadily trending lower for a while now. However, them bulls have finally had enough of chillin’ and decided to fight back and they chose to set up at 0.9220.
And as y’all can see, the bears have tried to push past 0.9220 on two occasions. And in both occasions, them bulls managed to hold their ground and launch counter-attacks. Bears are relentless, though, so the pair has been making higher lows. In the process, a descending triangle has formed for us to play with.
A descending triangle is a bearish pattern, so our main directional bias is to the downside. And we’re lookin’ to go short on the pair if 0.9220 is breached on strong bearish momentum. And if 0.9220 is broken, then the pair will likely have enough steam for a 170-pip move to the downside.
However, just remember that there’s always a chance that them bulls might win out in the end, although they need to clear both 0.9350 and 0.9400 in order to show them bears who’s boss.