Word up, peeps! The chart pattern party ain’t over yet, ‘coz I’ve got a potential inverted head-and-shoulders on EUR/AUD and a triangle on EUR/CAD in today’s intraday chart up. Hmm. I guess that means I’m serving up a comdoll + euro + chart pattern triple special today. How dope is that?
Bulls have been trying their best to push EUR/CAD higher but bears have entrenched themselves and are holding the line at 1.5300. As a result, a fresh ascending triangle has formed on EUR/CAD’s 1-hour chart.
An ascending triangle is a bullish forex chart pattern, so we’re mainly lookin’ to go long on the pair once the pair clears 1.5300 on strong bullish momentum.
However, the risk that bulls may run out of steam is always there. It would therefore be prudent for y’all to prepare for a potential downside breakout scenario as well. And all the more so, given that stochastic is already signaling overbought conditions and all that.
Just know, however, that a downside breakout needs to break lower past the two areas of interest at 1.5160 and 1.5130, ideally on strong bearish momentum.
Sound the reversal alert, yo! As y’all can see on that there chart, EUR/AUD appears to be forming what appears to be an inverted head-and-shoulders pattern, with the head at 1.5160 and the shoulders respecting the area of interest at 1.5280.
Now, the pair just needs to clear the “neckline” at 1.5340 in order to complete the pattern, so y’all may wanna put this pair on yo watchlists.
And if the pair does validate the pattern by breaking higher past 1.5340, then that likely means that them bulls will be gunning for 1.5680 next.
As always, however, there’s a chance that the pattern may fail. So if you were so gangsta that you went long before the pair broke past 1.5340, and if the pair went below 1.5280, then y’all may wanna bail yo long then.
Anyhow, just remember to practice proper risk management as always, a’ight? Peace!