In today’s intraday charts update, I’m serving up a couple of channel patterns on EUR/NZD and CHF/JPY that the trend riders out there may wanna check out.
EUR/NZD appears to be trading sideways at first glance. But if we connect the most recent peaks and troughs, we can see that the pair is actually tilting to the upside while inside that there ascending channel.
And as y’all should know by now, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is at or close to the channel’s support.
And since the pair is currently testing the channel’s support area at 1.6850, then that means that y’all should start looking.
Do be careful, however. After all, stochastic is presently signaling overbought conditions and all that, which likely means that there’s a higher-than-average chance for a downside breakout.
And if a downside channel breakout does occur, then y’all may wanna bail yo longs or even think about switching to a bearish bias, especially if the pair smashes lower past 1.6790 on strong bearish momentum.
Another channel has formed on CHF/JPY’s 1-hour chart. This one’s a descending channel, though, so we’re lookin’ for an opportunity to go short if the pair is at or close to the channel’s resistance area at 115.30.
And as it turns out, that’s where the pair is currently at, so y’all may wanna start looking. And all the more so, given that stochastic is presently signaling overbought conditions and all that.
Moreover, them moving averages are still indicating a healthy downtrend. And it even looks like the 100 SMA is acting as dynamic resistance to boot.
Just note that there’s always a risk that the pair may end up staging an upside channel breakout. A breakout needs to clear the area of interest at 116.00 before y’all may wanna think about bailing, though.
In any case, just make sure y’all always practice proper risk management, a’ight? Peace!