Yo! Let’s kickstart this week’s intraday charts update with a couple of fresh channels on EUR/CHF and CHF/JPY.
EUR/CHF has recently been trading higher will bouncing up and down inside that ascending channel. And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is at or close to the channel’s support area.
And lucky us since the pair is currently about to test the channel’s support area, which should be just below the area of interest at 1.1010. Moreover, stochastic is already signaling oversold conditions and all that. Y’all may therefore wanna start lookin’ for opportunities to go long on this pair.
However, do note that the channel gets invalidated if the pair moves past 1.0990 on strong bearish momentum. If the pair does that, then y’all may wanna start thinkin’ about bailing yo longs, if you have ’em.
Another short-term ascending channel has also formed on CHF/JPY’s 1-hour chart. And as y’all can see, the pair almost reached the channel’s support area, which is just below 117.00, but has began climbing again.
Y’all therefore better think fast on whether or not you wanna jump in. Although it’s recommended that more conservative forex traders may wanna sit this one out for now since the area of interest at 117.40 is close by. And it just so happens that 117.40 appears to have strong bearish interest since the pair has had difficulty moving higher past that price level.
As such, there’s also a chance for a downside channel breakout. The pair needs to clear 116.50 before the downside breakout is confirmed, though. Otherwise, the breakout may end up being a fakeout.
Anyhow, just remember to practice proper risk management as always, a’ight?