Sup, dawg! If you’re looking for short-term chart patterns on the Kiwi, then I’ve got your fix coz’ I’ve got a channel on NZD/JPY and a triangle on NZD/USD in today’s intraday charts update.
This one’s for the trend playas out there!
As ‘yall can see, NZD/JPY’s recent price action has a noticeable downward tilt. And from the looks of it, the pair is about to complete a descending channel on its 1-hour chart since the pair appears to be hesitating at the area of interest at 80.70.
If 80.70 holds as resistance, then them bears will likely be gunning for 79.20 next. The pair needs to go even lower and test the would-be channel’s support area before the descending channel is confirmed, though.
Until then, however, the chart pattern ain’t validated yet, which means that the risk for an upside move past 80.70 remains high. Only gangsta traders may therefore wanna look for opportunities to go short on this one. The conservative traders out there, meanwhile, may wanna sit this one out for a while.
Oh, do note that a move past 80.70 doesn’t automatically mean that y’all should switch to a bullish bias, since the pair needs to also move higher past 81.30 before we get a hint that bulls are in control and that the trend is changing.
If you’re more of a breakout chartist, then check out that there symmetrical triangle on NZD/USD’s 1-hour chart.
As y’all should know by now, a symmetrical triangle means that the pair is consolidating because neither bulls nor bears have a clear advantage, which means that the pair could break in either direction.
As such, it would be prudent for y’all to prepare for both a topside breakout scenario, as well as a downside one.
Our technical indicators seem to favor an upside move, though, since them moving averages are still in uptrend mode. Stochastic, meanwhile, is moving back up again after visiting oversold territory.
Whichever direction the pair opts to break out off, the resulting rally or sell-off will likely have enough momentum for a 190-pip move.
Just make sure to observe how the pair reacts to 0.7430, in case there’s an upside breakout. As for a downside breakout, the pair needs to smash lower past 0.7280 and 0.7240 before the breakout is validated.
Anyhow, just remember to practice proper risk management as always, a’ight? Peace!