Chart pattern time! I found a fresh channel on NZD/USD and a triangle pattern on EUR/JPY in today’s intraday charts update. Check ’em out, yo!
NZD/USD’s recent price action has a noticeable tilt to the downside. And if we connect the most recent peaks and troughs, we can see that the pair has been moving lower while trapped inside that there descending channel.
And as I sometime say (or write), one of the more conservative ways to play a descending channel is to look for opportunities to go short on the pair.
Well, guess where the pair is currently at? That’s right, dawg! The pair just recently bounced off the channel’s resistance area at 0.7310. Y’all therefore better decide quick whether to jump in with a short or not.
Looking at our technical indicators, we can see that them moving averages are presently in downtrend mode. And it even looks like as if the 200 SMA is acting as dynamic resistance. Stochastic, meanwhile, is pointing back down again after visiting overbought territory.
Given all that, an upside channel breakout therefore seems rather unlikely at this point. However, the risk is always there, so just be ready to bail yo shorts or even think about going long if the pair clears 0.7350 after staging a topside breakout.
EUR/JPY’s is apparently trading sideways while appearing to taper into a point, giving us that there fresh symmetrical triangle to play with.
A symmetrical triangle means that bears and bulls are fighting it out, but neither side has a clear advantage. And that means that the pair is just as likely to break to the upside as it is to the downside.
As such, we don’t really have a strong directional bias on the pair. Also, it would be prudent for y’all to prepare for both upside and downside scenarios. Gotta play it smart. Know what I’m sayin?
Anyhow, just keep in mind that an upside breakout needs to move higher past 134.70 before the breakout is validated and y’all can chillax. A downside break, meanwhile, needs to smash past the 132.00 major psychological level.
In any case and as always, just remember to practice proper risk management, a’ight? Cheers!