I’m mixing it up a bit in today’s intraday charts update, with a triangle on NZD/CHF and a Fibonacci play on USD/CAD. Check ’em out while they’re still hot!
NZD/CHF has recently been consolidating while inside that there symmetrical triangle. Well, symmetrical-ish, to be more precise since the triangle isn’t really all that symmetrical.
Anyhow, y’all know the drill, so prepare for both an upside breakout scenario as well as a downside breakout scenario. And just note that an upside breakout needs to clear 0.6820 while a downside breakout needs to smash lower past 0.6720. Also, whether an upside or a downside breakout occurs, the pair will likely have enough “oomph” for a 100-pip move.
Looking at our technical indicators, however, we can see that them moving averages are already in downtrend mode. It even looks like the 100 SMA is acting as dynamic resistance. Moreover, stochastic just pushed off after briefly testing overbought territory.
Given all that, it looks like a downside breakout is the more likely scenario. Still, it may be prudent for y’all to still prepare for both an upside and a downside scenario.
USD/CAD spurted lower after breaking lower from that there rising trend line. However, the pair encountered support at 1.2680 and was pushed higher recently.
As such, today’s play is obviously a Fibonacci retracement setup. And if we apply our Fibonacci tool, we can see that the 38.2%, 50%, and 61.8% retracement levels are all in play.
And currently, the pair is hesitating at the 38.2% level, which happens to line up with the area of interest at 1.2720. Will resistance hold? Well, there’s no guarantee on that, but stochastic is indicating overbought conditions and all that already, so there’s a good chance that resistance may hold.
However, if resistance fails to hold, then the pair will likely climb higher to 1.2740, which is just below the 61.8% retracement level.
But if the pair continues to climb even higher, then that means that them bulls are likely trying to test the broken trend line, so the pair will likely move higher to 1.2770. And if the pair still moves even higher past that, then all bearish bets are off, since a move higher past 1.2770 likely means that bulls are in command.
In any case, just make sure to always practice proper risk management, a’ight?