Sup, fam! I’ve got a couple of triangles on AUD/CAD and AUD/CHF in today’s intraday charts update that the breakout chartists out there may wanna check out.
As y’all can see, a descending triangle pattern has formed on AUD/CAD’s 1-hour chart, which is kinda weird. After all, a descending triangle is generally considered a bearish continuation pattern. But as y’all can see the previous trend before the pattern formed was an uptrend.
Anyhow, a downside breakout past 0.9780 will likely have enough momentum for a 100-pip move. However, there’s an area of interest nearby at 0.9760. So if the pair does break to the downside, then y’all may wanna keep a very close eye on the pair until it takes out 0.9760 as well.
And since the descending triangle formed after an uptrend, there’s also a risk that the chart pattern may break to the upside instead. Y’all may therefore wanna keep that in mind. Heck, y’all may even wanna prepare for a topside breakout as well. Just note that the pair needs to clear 0.9880 before the uptrend is confirmed to have resumed.
A more symmetrical-ish triangle has formed on AUD/CHF’s 1-hour chart. And as y’all probably know by know, a symmetrical triangle means that them bulls and bears are fighting it out in a game of tug-o-war, but neither side is clearly winning out.
As such, it would be prudent to prepare for both an upside breakout scenario, as well as a downside breakout scenario.
Just note that an upside breakout move needs to move higher past 0.7690 before the breakout is confirmed. A downside breakout, meanwhile, needs to smash lower past 0.7590.
In any case, just make sure to practice proper risk management as always, a’ight?