We’ll be mixing it up in today’s intraday charts update since we’ll be checking up on our old setups on CAD/CHF, as well as a fresh channel on GBP/NZD.
Back then, we were mainly bullish on the pair. However, I also told y’all that it would be prudent to prepare for a downside breakout as well since the pair failed to touch 1.0030 during the most recent upswing. And that was a sign that bears may be winning out.
Well, that advice was real dope since the pair did break to the downside as feared. Heck, the pair even took out the key area of interest at 0.9940. So if you listened to my advice, then congratulations on bagging some pips. Aww, yeah!
Anyhow, I also told y’all back then that if the pair clears 0.9940, then that means that them bears are likely gunning for 0.9830. But as y’all can see on that there chart, the pair has yet to test 0.9830. Also, the pair pulled back and almost hit the key price area at 0.9940 before moving back down again. Y’all therefore better think quick if y’all wanna jump in with a short.
If bearish momentum is sustained, then bears will likely gun for 0.9830. However, all bearish bets are off if the pair moves back above 0.9940 and then takes out 0.9980 since that’s a sign that bull are likely in control.
As y’all can see, GBP/NZD’s price action has been tilting to the upside recently. And if we connect the most recent peaks and troughs, we can see that the pair has been trading higher while trapped inside an ascending channel.
As y’all probably know by now, one of the more conservative ways to play a an ascending channel is to look for opportunities to go long when the pair is at or close to the channel’s support area.
However, the pair is currently at the channel’s resistance area. Y’all may still want to put this pair on your watchlist, though. After all, the channel’s resistance area happens to line up with the area of interest at 1.9200. Also, stochastic is pointing back down after reaching overbought territory, which may mean that bears may try to push the pair lower sooner or later.
If the pair does start pulling back, then the pair will likely retrace to the channel’s support area, which should be at or just below 1.9170.
As always, however, there’s a slim chance for a downside channel breakout. And as such, y’all just be ready to bail yo longs (or even switch bias) if the pair clears 1.9070 after staging a downside breakout.
Anyhow, just remember to always practice proper risk management, a’ight?