Our trip down memory lane ain’t over yet. And in today’s intraday charts update, we’ll be revisiting our old setups on CAD/JPY and AUD/USD.
The pair was testing the channel’s support area back then. And we were expecting the pair to pull back to the channel’s resistance area, which was near 88.30 at the time.
Well, the pair did pull back as expected. Unfortunately, the pair came close to but never quite reached 88.30 before moving back down again. But if you were gangsta enough and found an opportunity to short anyway, then congratulations. You’ve got skillz, dawg!
Anyhow, the pair just recently tested the channel’s resistance area at 87.20. And presently, the pair appears to be making its way to the downside. Y’all therefore decide quick if y’all wanna jump in with a short or sit this one out.
But just in case you do plan to short, just know that the pair failed to reach the channel’s support area during the latest swing. That may be a sign that bulls are gaining strength and/or bears are losing their mojo.
Y’all may therefore wanna prepare for the possibility that the pair may stage an upside channel breakout. The pair needs to clear 87.80 and 87.50 before the breakout is validated, though.
Back on November 24, we identified a descending channel on AUD/USD’s 1-hour chart and we were mainly looking to go short since the pair was testing the channel’s resistance area below 0.7640.
The pair did move lower since then and the channel is still actually intact, although y’all can’t see it on that there chart. However, after taking the most recent price action into account, we can see that the pair has been trading sideways while tapering into a point. And in the process, a fresh symmetrical triangle has formed.
A symmetrical triangle may break either to the upside or downside. And y’all may wanna prepare for both scenarios.
A downside breakout needs to clear 0.7530 before the breakout is confirmed, though. An upside breakout, meanwhile, needs to take out both 0.7640 and 0.7690.
In any case and as usual, just make sure to practice proper risk management as always, a’ight?