It’s a fresh trading week, fam! And we’re kickstarting this week’s intraday charts update with a triangle on AUD/CAD and a channel on USD/CHF.
If you’re a breakout chartist, then you may like that there setup on AUD/CAD.
As y’all can see the pair has been trading sideways while tapering into a point. And in the process, a fresh symmetrical triangle pattern has emerged. A symmetrical triangle pattern can break either to the topside or the downside. And it may be prudent for y’all to prepare for both scenarios.
Do note, however, that an upside breakout needs to clear both 0.9730 and 0.9760 before y’all can chillax. Otherwise, the breakout may end up being a nasty fakeout. A downside breakout, meanwhile, needs to smash lower past 0.9610.
In either case, the resulting breakout move will likely have enough momentum for a 120-pip move, based on the height of the forex chart pattern.
If y’all can still recall, we found an ascending triangle on USD/CHF’s 1-hour chart way back on November 7. In fact, y’all can still see the triangle on that there chart.
Anyhow, the triangle broke lower and we wanted to add to our shorts back on November 16 because the pair was pushing off 0.9940 and we were expecting the pair to gun for 0.9830.
Well, check that out, dawg! That’s right! The pair reached 0.9830 and then some. So congratulations if you were able to add to yo shorts! Aww, yeah!
For today’s play, we took account of the most recent price action and it looks like a fresh descending channel has formed for us to play with.
The pair is currently testing the channel’s support area at 0.9800, so the pair may be moving back up again soon. Stochastic doesn’t agree, though, since it’s pushing off overbought territory.
Anyhow, if the pair does move higher past 0.9830, then bulls will likely be shooting for the channel’s resistance area, which should be somewhere around the area of interest at 0.9880. And if 0.9880 holds as resistance, then the pair will likely be moving back down again.
But if 0.9880 fails to hold, then y’all may wanna bail, especially if the pair continues to move higher and takes out 0.9940.
In any case4, just make sure to practice proper risk management as always, a’ight?