In today’s intraday charts update, I’m serving up a couple of possible breakout plays on EUR/AUD and USD/CAD. Check ’em out!
This one keeps pacing back and forth between the range support around the 1.5650 minor psychological mark and resistance at 1.5775. Just when price seemed ready for an upside break last week, euro bears came back to play and pushed it back down to the bottom.
So far, the floor appears to be holding as stochastic is starting to pull up from oversold levels and indicate a return in bullish pressure. At the same time, the 100 SMA has crossed above the longer-term 200 SMA as well.
If you’re going long, make sure to set your stop below the range support or those spikes down to the 1.5600 area. After all, a break lower could lead to a selloff of the same height as the rectangle pattern.
Reversal pattern alert! USD/CAD seems tired from its selloff as it is now forming an inverse head and shoulders pattern on its 4-hour time frame.
Price has yet to test the neckline around the 1.2650 minor psychological level before confirming a potential rally, though. If that happens, the pair could climb by around 400 pips or the same height as the chart formation.
Stochastic is on the move up to show that buyers have the upper hand, but the oscillator is also closing in on the overbought area to reflect exhaustion. If sellers take over, price could break below the area of interest around 1.2450 to fall back to the next support at 1.2250.
Note, however, that the 100 SMA is attempting to cross above the longer-term 200 SMA to draw more bulls back in.
In any case, just make sure y’all always practice proper risk management, a’ight? Peace!