Today’s intraday charts update is mainly for the trend playas out there since I’m serving up a couple of short-term channels on EUR/NZD and GBP/CHF.
EUR/NZD’s recent price action has been tilting to the downside recenlty. Not only that, the pair has been moving lower while respecting that there descending channel.
As y’all should know by now, one of the more conservative ways to play is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
And as y’all can see, that’s where the pair is currently at. In fact, the pair appears to be pushing off the channel’s resistance at 1.6850 and is moving lower. Y’all may therefore wanna start looking for a chance to go short.
Do note, however, that buying interest appears strong at 1.6790, so just make sure y’all keep a close eye on that price area if/when the pair does get there.
Also, do note that them moving averages are about to cross-over into uptrend mode. If that happens, then that may entice bulls to jump in, which would increase the chance for an upside channel breakout.
And if an upside breakout does occur, then y’all may wanna think about bailing yo shorts, especially if the pair clears 1.7010 since that would validate the breakout.
A channel has also formed on GBP/CHF’s 1-hour chart. This one is an ascending channel, though, so we’re mainly bullish on the pair.
And as y’all can see, the pair is just about to test the channel’s support area at 1.3050. Y’all therefore better get ready to start looking for opportunities to go long on the pair.
Looking at our technical indicators, we can also see that them moving averages are still in uptrend mode, with the 100 SMA apparently acting as dynamic support. Stochastic, meanwhile, is already signaling oversold conditions and all that, which is another technical argument for the pair to move up.
As usual, however, there’s always a risk that the pair may move to the downside instead. So just be ready to bail yo longs if the pair stages a downside breakout and takes out the 1.3000 major psychological level.
Anyhow, just remember to practice proper risk management as always, a’ight?