Yo! Let’s start this week’s intraday charts update with a couple of chart patterns. To be specific, I’m serving up a channel on AUD/JPY and a triangle on EUR/CHF.
If you’re a breakout chartist, then ya may wanna put EUR/CHF on yo watchlist. After all, an ascending triangle has formed on EUR/CHF’s 1-hour chart.
An ascending triangle is, as the name suggests, a bullish chart pattern, so our main directional bias is to the upside. And should an upside breakout occur, then the pair may have enough steam for a 200-pip move, especially if bullish momentum is strong.
However, there’s always a slim chance that the pair may break to the downside instead. The pair needs to smash past 1.1390 before the downside breakout is confirmed, though. Still, y’all may wanna plan around such a scenario as well.
In any case, just make sure to practice proper risk management, a’ight?
As y’all can see, AUD/JPY has been trending lower while apparently respecting that there descending channel on its 1-hour chart.
And as y’all can also see, the pair just recently bounced off the channel’s resistance area, which lines up with the area of interest at 88.00. In addition, the 100 SMA also acted as dynamic resistance.
As such, chances are good that bears are in control, so y’all therefore better decide quickly on whether or not you wanna jump in with a short. And if bearish momentum is sustained, then them bears will likely be gunning for 86.90 next.
Do note, however, that stochastic is already signaling oversold conditions and all that. As such, there’s a risk that them bulls may launch an attack in an attempt to stage an upside channel breakout.
And if an upside channel breakout does occur, then y’all may wanna think about bailing yo shorts (or even switching to a bullish bias) should the pair break past 88.30 on strong bullish momentum.