Yo! If you’re lookin’ for breakout plays on the Loonie, then you may wanna check out these triangle patterns on EUR/CAD and CAD/CHF in today’s intraday charts update.
First up is that there symmetrical triangle pattern on EUR/CAD’s 1-hour chart.
A symmetrical triangle pattern means that bulls and bears are locked in a game of tug-o-war where neither side is really winning. It’s only a matter of time before one side finally gives way.
However, a symmetrical triangle also means that one side is just as likely to win as the other, which means that the pair could break either to the upside or the downside.
As such, we don’t really have a directional bias on the pair. And it would be even prudent for y’all to prepare for both upside and downside scenarios.
Just keep in mind, though, that an upside move needs to clear 1.5680. Although a move past 1.5650 would be an early sign that bulls are taking control.
A downside breakout, meanwhile, needs to smash lower past 1.5540 to validate the breakout.
Whichever scenario plays out, the resulting breakout move would likely have enough momentum for a 140-pip run, based on height of the triangle.
Like EUR/CAD, recent price action on CAD/CHF has also been trading sideways while tapering into a point, giving us yet another symmetrical triangle pattern to play with.
As usual, just keep in mind that the pair may break out either to the upside or the downside, so y’all may wanna make the necessary preparations.
Looking at our technical indicators, however, we can see that they currently appear to be favoring a potential move to the downside since them moving averages are in downtrend mode and the 200 SMA seems to be acting as dynamic resistance. Stochastic, meanwhile, is pointing back down after reaching overbought territory.
Anyhow, just note that a downside breakout still needs to take out the area of interest at 0.7340, ideally on strong bearish momentum. An upside move, meanwhile, needs to clear 0.7430 in order to validate the breakout.
In any case, just make sure y’all remember to practice proper risk management, a’ight? Peace!