The chart pattern train ain’t got no brakes! In today’s intraday charts update, I’m serving up a couple of short-term triangles on AUD/CHF and EUR/CHF. Get ’em while they’re still fresh!
AUD/CHF has been consolidating recently. And if we connect the most recent peaks and troughs on its 1-hour chart, we can see that the pair appears to be forming a symmetrical triangle.
As y’all should know by now, a symmetrical triangle means that bulls and bears are fighting it out, but neither side has a clear advantage. As such, the pair is just as likely to break to the upside as the downside. Y’all may therefore wanna prepare for both scenarios.
An upside breakout needs to clear 0.7730 on strong bullish momentum, though. Otherwise, the risk remains high that the breakout may fail and end up being a fakeout. A downside breakout, meanwhile, needs to smash lower past 0.7630 and 0.7590.
In either case, the resulting breakout move will likely have enough momentum for a 100-pip move, based on the height of the chart pattern.
EUR/CHF has also been trading sideways recently. And like AUD/CHF, price action on EUR/CHF appears to be forming a symmetrical triangle pattern as well.
Again, a symmetrical triangle can break in either direction, so it would be prudent for y’all to prepare for both upside and a downside scenarios.
As for key levels to watch, an upside move needs to take out 1.1830 before the breakout is confirmed and y’all can chillax. A downside move, meanwhile, needs to break lower past 1.1720 and 1.690.
In any case, it’s always good practice to observe proper risk management, so make sure to do that, a’ight?