Yo! Let’s take another stroll down memory in today’s intraday charts update as we check up on our old setups on EUR/AUD and EUR/NZD. And as usual, we’ll be lookin’ for fresh plays as well.
If y’all can still recall, we found that there descending channel on EUR/AUD’s 1-hour chart way back on January 3. And back then, the pair was above the area of interest at 1.5330. But as y’all can see, the pair has moved lower since then before moving back up again.
So if any y’all missed your chance to go short on the pair before, then y’all better start lookin’ for opportunities to go short since the pair is currently testing the area of interest at 1.5280. Moreover, stochastic is already signaling overbought conditions and all that.
Do note, however, the channel’s resistance area is actually just below the area of interest at 1.5330. There’s therefore a chance that the pair may move higher.
That’s still cool, though, as long as the pair doesn’t start closing above the 1.5400 major psychological level since a close above 1.5400 is an early sign that bulls are taking over.
We identified that there symmetrical triangle also way back on January 3. And as y’all can see, the pair opted to break to the downside and even cleared the area of interest at 1.6750 that I told y’all to keep an eye on.
And if you were able to ride the pair lower at the breakout point or at 1.6750 (or both), then congratulations on bagging some delicious pips. Aww, yeah!
Anyhow, the pair’s downward push has slowed recently. Not only that, the pair also appears to be pulling back. And presently the pair is testing the area of interest at 1.6640.
There’s therefore a chance that the pair may move back down again. And all the more so, given that stochastic is already indicating overbought conditions and all that. However, there’s also a risk that the pair will pull all the way back to 1.6750.
In any case, if the the pair does find resistance and starts moving back down, then them bulls will likely be gunning for 1.6480 and 1.6360 next.
But if resistance doesn’t form and the pair continues moving higher past 1.6820, then y’all may wanna think about bailing yo shorts or even switching to a bullish bias. After all, a move past will invalidate the triangle breakout and signal that bulls are in charge.
Anyhow, just remember to always practice proper risk management, a’ight? Peace!