The chart pattern party ain’t over yet! In today’s intraday charts update, I’ve got a triangle on GBP/NZD’s 1-hour chart and a channel on CAD/CHF. Check ’em!
GBP/NZD has been trading sideways for some time now. And if we connect the most recent peaks and troughs, we can see that the pair’s price action is tapering into a point, forming that there symmetrical triangle.
As y’all should know by now, a symmetrical triangle is just as likely to break to the upside as the downside. We therefore don’t really have a directional bias on the pair. And it may even be prudent for y’all to prepare for both an upside and a downside scenario.
Whichever scenario plays out, the resulting breakout move will likely have enough momentum for a 300-pip move.
However, just note that an upside breakout needs to clear 1.9260 before y’all can chillax. Until then, there’s a higher-than-average chance that the breakout may end up being a fakeout. As for a downside move, the pair needs to smash lower past 1.8940 before the downside break is validated.
CAD/CHF has been steadily trending lower while apparently respecting that there descending channel on its 1-hour chart.
And as I sometimes say (or write), one of the more conservative ways to play a descending channel is to look for opportunities to go short on the pair.
Well, it looks like the pair is currently making its way up towards the channel’s resistance area, which should be at or just below the area of interest at 0.7340. Y’all may therefore wanna get ready to start lookin’ for opportunities to go short.
However, just be ready to bail or cancel yo shorts if the pair continues to move higher and takes out the area of interest at 0.7380 since that would be a sign that bulls are taking over.
Anyhow, just make sure y’all practice proper risk management as always, a’ight?