Chart pattern time! In today’s intraday charts update, I’m serving up a double bottom on NZD/USD and a channel on AUD/CHF that y’all may wanna check out. Get ’em while they’re still fresh!
NZD/USD recently validated that there double bottom pattern by breaking to the upside.
Te breakout is still fresh. And looking at the chart above, we can see that the pair already appears to be hesitating at the area of interest at 0.7310. There’s therefore two ways to play this setup.
The first and more conservative way is to wait for the pair to pullback to the double bottom’s neckline around the area of interest at 0.7270. And there’s a good chance that scenario will play out. After all, stochastic is already signaling overbought conditions and all that.
As for the second way to play this setup, that would be to wait for a topside breakout past 0.7310. This scenario is a extra risky, though, so it’s only suggested for the gangsta traders out there.
Whichever scenario plays out, just know that them bulls will likely be gunning for 0.7390. However, just keep a close eye on the area of interest at 0.7340 since bears will likely be waiting there.
If trading breakouts ain’t your thing, then check out that there descending channel on AUD/CHF’s 1-hour chart.
And as y’all can see, the pair is currently making its way towards the channel’s resistance area, which should be just below the area of interest at 0.7360. Y’all may therefore wanna get ready to start lookin’ for opportunities to go short on the pair.
An upside channel breakout seems unlikely for now. However, the chance of an upside breakout is always there, so just get ready to bail yo shorts if the pair moves higher and clears 0.7390 since that would validate the breakout and signal that bears are in control.
In any case, just remember to practice proper risk management as always, a’ight? Peace!