Yo! I’m serving up a couple of short term chart patterns in this week’s first intraday charts update, with a channel on EUR/NZD and a triangle on GBP/CAD. Check ’em out!
EUR/NZD has been trending lower recently while apparently trapped inside that there descending channel.
And as y’ll can see, the pair is currently climbing higher, likely in order to test the channel’s resistance area, which should be somewhere around the 1.6900 major psychological level.
Y’all better get ready to start lookin’ for opportunities to go short on the pair soon. There’s a chance that the pair may move lower without testing 1.6900, though. After all, stochastic is signaling overbought conditions and all that already. Also, the pair is pretty close to the 100 SMA and the 100 SMA may potentially act as dynamic resistance.
Anyhow, just keep in mind that there’s also always a risk for an upside channel breakout. So just be ready to bail yo shorts, especially if the pair clears 1.7050 since that’s a sign that bulls are likely in control and that the trend may be changing.
Bulls and bears have apparently been playing a game of tug-o-war on GBP/CAD’s 1-hour chart since a fresh symmetrical triangle has formed for us to play with.
A symmetrical triangle means that neither bulls nor bears have a clear advantage at the moment, so the pair could break out either to the topside or the downside.
As such, it would be prudent not to have a strong directional bias on the pair. Heck, y’all may even wanna prepare for both an upside and a downside scenario.
Just know, however, that an upside breakout needs to clear 1.7460 on strong bullish momentum. Otherwise, there’s a high risk that the breakout may fail and end up being a fakeout. Meanwhile, a downside breakout needs to push lower past 1.6920.
In any case, just make sure to practice proper risk management as always, a’ight?