Sup, dawg! I’ve got a couple of channel patterns on NZD/USD and AUD/CHF in today’s intraday charts update that the trend playas out there may wanna check out.
NZD/USD has been trending ever higher for some time now. Not only that, NZD/USD has been moving higher while respecting that there ascending channel on its 1-hour chart.
And as y’all can see, the pair is pulling back after testing the channel’s resistance area. Y’all may therefore wanna put the pair on yo watchlist since the pair is likely gunning for the channel’s support area somewhere around 0.7170, which means that an opportunity to go long on the pair may present itself soon.
A downside channel breakout is not very probable at the moment, given that them moving averages are indicating a healthy uptrend. However, the risk is always there. So if support fails to form at 0.7170 and the pair keeps moving lower and smashes past 0.7140, then y’all may wanna bail yo longs or even switch to a bearish bias on the pair.
Like NZD/USD, AUD/CHF ‘s price action has also been tilting to the upside while trapped inside an ascending channel.
Unlike our earlier setup in NZD/USD, however, AUD/CHF is currently already testing the channel’s support area at 0.7650. Y’all may therefore wanna start lookin’ for opportunities to go long on the pair. And all the more so, given that stochastic is already signaling oversold conditions and all that.
Do note, however, that if 0.7650 holds as support and if the pair does move higher, then just make sure to keep a close eye on how the pair reacts to the 0.7700 psychological level since selling interest seems strong there.
In fact, since bears appear to have entrenched themselves at 0.7700, there’s also presently a risk for a downside channel breakout. And if a downside breakout does occur, then y’all better start thinking about bailing yo longs or even switch bias, especially if the pair breaks lower past 0.7620.
Anyhow, just make sure to practice proper risk management as always, a’ight?