For this week’s final intraday charts update, I’m serving up a triangle pattern on AUD/CAD and a Fibonacci retracement play on EUR/CAD.
Bulls have recently been trying to push AUD/CAD ever higher. However, bears have set up a defensive line and entrenched themselves at 1.0030. And so far, them bears have been successful in repelling the bulls’ upward push. In the process, an ascending triangle pattern has formed for us to play with.
An ascending triangle is a bullish forex chart pattern, so our main directional bias is to the upside. And should the triangle break to the upside, then the resulting rally will probably have enough steam for a 200-pip move.
Do note, however, that ascending triangles usually form after an uptrend. But as y’all can see, the most recent trend was a downtrend. As such, there’s also a chance that the pair may break to the downside, so y’all may wanna prepare for such a scenario as well, especially if the pair clears 0.9870 on strong bearish momentum.
We found that there trading range or rectangle pattern back on July 27. Back then, the pair was approaching the rectangle’s resistance area at 1.4660, so we were lookin’ to trade the range by waiting for an opportunity to short.
However, I warned y’all that there’s always chance that the pair may break to the topside instead, and that the pair needs to clear 1.4740 and then 1.4840 (1.4850 originally) in order to validate an upside breakout.
Well, the pair did break to the topside, as y’all can see. Also, the pair cleared both 1.4740 and 1.4840, so we’re now bullish on the pair. By the way, congratulations if you were also able to ride that breakout move.
Anyhow, the pair appears to be hesitating, so it’s only a matter of time before it pulls back. And using our handy Fibonacci tool, we can see that the 38.2% and 61.8% retracement levels are the pullback areas to watch since they’re close to the areas of interest at 1.4840 and 1.4740 respectively.
Do note, however, that if the pair goes below 1.4740 and clears 1.4660, then y’all may wanna bail yo longs since that’s a clear sign that bears are in control. In any case, just make sure to practice proper risk management, a’ight?