Yo! I’ve got a channel on EUR/CAD’s 1-hour chart that trend riders may like. Breakout chartists, meanwhile, may wanna check out the triangle I found on CHF/JPY’s 1-hour chart.
EUR/CAD has recently been moving higher while apparently trapped inside an ascending channel.
And lookin’ at the chart above, we can see that the pair is currently bouncing off the channel’s support area at 1.5550. Y’all may therefore wanna start lookin’ for opportunities to go long on the pair. And all the more so, given that stochastic is pointing back up again after reaching oversold territory.
Do note, however, that the pair’s latest upswing failed to reach the channel’s resistance area. Instead, the pair was forced back down again at the mid-channel area.
These point to the possibility that bulls may be running out of steam. So if any y’all do find a chance to go long, then y’all may wanna keep a close eye on how the pair reacts to 1.5650 since them bears appear to have entrenched themselves there.
Moreover, the possibility that bulls may be running out of steam also means that there’s a higher-than-average chance for a downside channel breakout. So if that scenario plays out and the pair takes out 1.5490, then y’all may wanna think about bailing yo longs or even switching to a more bearish bias.
The descending channel on CHF/JPY’s 1-hour chart that we found back on February 15 is still actually in play.
However, the pair appears to have found support at 114.50. And if we take the most recent price action into account, we can see that the pair appears to be forming a descending triangle pattern.
As the name implies, a descending triangle is a bearish chart pattern. We are therefore waiting to go short if the pair breaks lower past 114.50, ideally on strong bearish momentum.
However, there’s always a risk that the pair may break to the topside instead. And if that happens, then a move higher past 115.40 would be an early sign that bulls are taking control. Although the pair needs to also clear 115.90 before the breakout is validated and y’all can chillax.
Whichever scenario plays out, just remember to practice proper risk management as always, a’ight?