Wassup, dawg! I’ve got a couple of chart patterns lined up in today’s intraday charts update, namely a channel on AUD/USD and a triangle on EUR/NZD.
As y’all can see on that there chart, AUD/USD has been trending ever higher while trapped inside an ascending channel.
The pair has already bounced off the channel’s support area and is making its way higher. However, y’all may wanna put this chart on your watchlist since an opportunity to go long may present itself soon.
After all, the pair appears to be hesitating at the mid-channel area. In addition, stochastic is signaling overbought conditions and all that already.
If the pair does pull back, then them bears will likely be gunning for 0.8070. Although the pair could potentially go as low as 0.8040.
However, if the pair goes even lower than that and takes out 0.8010, then y’all may wanna bail yo longs or even switch to a bearish bias on the pair. After all, a move lower past 0.8010 would validate the downside channel breakout, hinting that bears are in control on the pair.
EUR/NZD has been trading sideways for a while now. Not only that, the price action on EUR/NZD’s 1-hour chart appears to be tapering into a point, forming that there symmetrical triangle.
A symmetrical triangle could break in either direction so we don’t really have a directional bias on the pair. It would even prudent for y’all to prepare for both an upside and a downside scenario.
Just know, though, than an upside breakout needs to clear 1.7010 on strong bullish momentum. Otherwise, there’s a high chance that the breakout may end up being a fakeout. A downside breakout, meanwhile, needs to smash lower past 1.6840.
Whichever scenario plays out, the resulting breakout move will likely have enough momentum to for a 200-pip move.
And as always, just make sure to remember to practice proper risk management, a’ight?