Let’s end this week’s intraday charts update by checking up on our old setups on EUR/CHF and CAD/JPY. And as always, we’ll be lookin’ for fresh plays as well.
And back then, I told y’all that a breach past 1.1620 would be the earliest signal that the pair is attempting an upside breakout. However, the pair needs to clear 1.1660 to actually validate the breakout.
Well, check that out, dawg! That’s right! The pair cleared 1.1620 and 1.1660. So if you you were able to jump in with a long, then congratulations on banking some pips. Aww, yeah!
Anyhow, we’re still bullish on the pair. But if we take the most recent price action into account, we can see that the pair has been trending higher inside a small ascending channel.
And it just so happens that the pair is currently testing the channel’s support area. Y’all therefore better start lookin’ for opportunities to go long on the pair. And all the more so, given that stochastic is pointing back up after reaching oversold territory.
Just note that selling interest at 1.1700 seems strong, however. So if support does form, then don’t chillax until the pair clears 1.1700.
Also, there’s actually a risk that the pair may temporarily stage a downside breakout to test 1.1660. Everything’s still cool as long as 1.1660 holds, though. But y’all may wanna think about bailing yo longs if 1.1660 fails to hold and the pairs moves lower past 1.1620.
And if y’all can still recall, we identified the 61.8% and 38.2% retracement levels as the likely pullback areas since they lined up with the key price areas at 88.70 and 89.00. Also, I told y’all back then that if any of those price areas hold, then the pair would likely be gunning for 87.80 next.
Well, looks like 88.70 did serve as resistance and the pair went all the way down to 87.80. So congratulations if you were able to bag even more pips. Aww, yeah! We got bank, dawg!
For today’s play, we took account of the most recent price action and we can see that a fresh descending channel has formed for us to play with.
The pair is currently at the channel’s support area, though, so we’ll have to wait until the pair pulls back to the channel’s resistance area so that we can short again. And the channel’s resistance area will likely be somewhere around 88.30.
Just be ready to bail yo shorts if the pair doesn’t respect 88.30 and moves higher past 88.70, though. And as always, just remember to always practice proper risk management, a’ight? Peace! See y’all again next week!