Word up, fam! Let’s kick off this week’s intraday charts update with a couple of channels on EUR/GBP and EUR/CAD. Check ’em out!
EUR/GBP has been tilting to the downside recently while apparently trapped inside that there descending channel.
And as I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
And as luck would have it, the pair just recently bounced off the channel’s resistance area at 0.8810. Moreover, stochastic is pointing back down again after milling about in overbought territory for a while. Y’all therefore better decide quick whether it’s still worth it jump in with a short or not.
As always, however, there is always a risk that the downswing may lose steam, allowing the bulls to take control and stage an an upside channel breakout instead. If that happens, then y’all may wanna think about bailing yo shorts, especially if the pair clears 0.8840.
A channel has also formed on EUR/CAD. This one is ascending channel, though, so we’re mainly bullish on the pair.
And as y’all can see, the pair is presently testing the channel’s support area. Not only that, the channel’s support area lines up rather nicely with the area of interest at 1.5260.
Y’all therefore better 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.
The current downswing seems rather strong, though, so y’all may wanna cancel yo shorts or even switch to a bearish bias if the pair moves lower past 1.5210 after staging a downside breakout.
In any case, just make sure to remember to practice proper risk management as always, a’ight?