Let’s close out this week’s intraday charts update by going back to the beginning. And by that I mean checking up on our old setups from Monday’s intraday charts update.
We found that there ascending channel back on Monday. And if y’all can still recall, we were lookin’ for an opportunity to go long back then since the pair was just about to test the channel’s support area at 1.1010.
And as y’all can see, 1.1010 did hold as support and the pair moved back up again. However, we got more than we were lookin’ for since the pair staged an upside channel breakout. Well, can’t really complain for getting almost 400 pips in just one trading week. Anyhow, congratulations if y’all were also able to ride this pair.
As for fresh setups on the pair, it looks like EUR/CHF is hesitating at 1.1390. Moreover, stochastic has been signaling overbought conditions and all that for quite some time now. There is therefore a higher-than-average chance that the pair may start pulling back soon.
And using our handy Fibonacci tool, we can see that the 38.2%, 50% and 61.8% retracement levels all line up nicely with the price areas of interest at 1.1240, 1.1200, and 1.1160 respectively. They’re all therefore all valid pullback areas.
However, the most conservative pullback area to keep an eye on appears to be the 50% retracement level. And if y’all wanna know why, then just zoom out to the higher time frames, such as a daily or weekly chart, and you’ll see what I mean.
We also had that ascending channel on CHF/JPY’s 1-hour forex chart back in Monday’s intraday chart update.
The pair just bounced off 117.00 and was making its way higher back then. And since then, the pair reached the channel’s resistance area before promptly staging a downside channel breakout.
Both the channel continuation and the downside channel breakout scenarios were covered in Monday’s intraday charts update, so hopefully y’all were able to ride the upswing and then short when the pair broke to the downside.
And if you were also able to play both scenarios, then congratulations ‘coz you got skillz, dawg. Go reward yo self by buying new threads, why don’t cha?
Anyhow, the pair appears to be pulling back after hitting support at 114.20. Today’s play on the pair is therefore also a Fibonacci retracement setup.
And like our earlier setup on EUR/CHF, the 38.2%, 50% and 61.8% retracement levels on CHF/JPY also line up with areas of interest at 115.60, 116.00, and 116.60 respectively. Also, the 50% retracement levels is the more conservative pullback area to keep an eye on.
In any case, just make sure to practice proper risk management, a’ight? Peace! I’m out! And see y’all next week!