Heads up, dawg! I’ve got a couple of short-term triangle patterns on NZD/CAD and EUR/NZD in today’s intraday charts update that the breakout chartists out there may like.
NZD/CAD has been trading sideways recently. However, price action is clearly tapering to a point, so much so that a fresh symmetrical triangle has emerged for us to play with.
Looking at our technical indicators, we can see that stochastic is signaling oversold conditions and all that already. Meanwhile, them moving averages are in uptrend mode. And it even looks like the 100 SMA is acting as dynamic support. Our technical indicators are therefore hinting at a potential bullish move.
However, a symmetrical triangle means that bulls and bears are playin’ a game of tug-o-war, with neither side having a clear advantage. As such, the pair is just as likely to break to the downside as it is to the upside.
We therefore shouldn’t really have a clear directional bias on the pair. And it may even be prudent for y’all to prepare for both upside and downside scenarios.
Anyhow, an upside breakout needs to take out 0.9110 before the breakout move is validate. Otherwise, the risk of a fakeout remains high. A downside break, meanwhile, needs to smash lower past 0.9010.
A triangle pattern has also formed on EUR/NZD’s 1-hour chart. But as y’all can see, this one is an ascending channel.
And since an ascending triangle is a bullish continuation forex chart pattern, and since the pair has been closing above both SMAs, we’re also mainly bullish on the pair. We’re therefore waiting for an opportunity to go long if the pair moves higher past 1.6860, preferably on strong bullish momentum.
However, there’s always a slim chance that the pair may break to the downside instead. Y’all may therefore wanna plan ahead for such a scenario.
Do note, though, that a downside move needs to move lower past 1.6750 before the downside break is confirmed. Although y’all may also wanna keep an eye on how the pair reacts to the 1.6700 major psychological level.
In any case, just make sure to practice proper risk management as always, a’ight?