Yo! For the first intraday charts update of 2018, I’m serving up a Greenback + channel double special that y’all may like.
As y’all can see, NZD/USD has been steadily trending higher while respecting that there ascending channel for a while now.
And presently, the pair has been very grudgingly edging lower towards the channel’s support area, which should be just above the area of interest at 0.7090. Y’all therefore better get ready to start lookin’ for opportunities to go long on the pair.
However, do note that there seems to be a bearish divergence between price action and stochastic. There’s therefore also a risk for a downside channel breakout. So if the pair does stage a downside break, then y’all better decide on whether or not to bail yo longs, especially if the pair breaches 0.7070.
Looking at that there chart, it looks like USD/JPY is respecting that descending channel’s support area, which is not surprising since the channel’s support area sits right smack on the area of interest at 112.10.
And since stochastic is pointing back up and is about to leave oversold territory, chances are that the pair will also pullback towards the channel’s resistance area at or near the area of interest at 112.50.
The risk for an upside breakout is always there, however, so just be ready to bail yo shorts, especially if the pair takes out 112.80. Them moving averages just recently crossed-over into downtrend mode, though, so an upside channel breakout is probably unlikely.
Anyhow, just remember to always practice proper risk management, a’ight?