I hope y’all are still in the mood for chart patterns ‘coz I’m serving up a couple more in today’s intraday charts update, with EUR/JPY and USD/CAD in focus.
An ascending triangle appears to be forming on EUR/JPY’s 1-hour forex chart.
As the name implies, an ascending triangle is a bullish forex chart pattern. Our main directional bias is therefore to the upside.
Looking at our technical indicators, we can see that stochastic is already pointing up again after reaching oversold territory. Them moving averages, meanwhile, are about to cross-over into uptrend mode. Our technical indicators therefore also support further moves to the upside.
However, the 132.00 major psychological level has served as resistance in the recent past. There’s therefore also a chance that sellers will resist the upward push and cause the pair to break to the downside instead.
Y’all may therefore wanna prepare for a downside triangle breakout as well. Although the breakout ain’t confirmed until the pair moves lower past the area of interest at 130.70, ideally on strong bearish momentum.
USD/CAD has been trading ever higher recently while apparently inside an ascending channel.
Okay, gonna keep it real with y’all. That channel hasn’t actually been confirmed yet since the pair has to respect the would-be channel’s support area at 1.2880 and move higher first. Only then will the channel be validated.
Since the channel hasn’t been validated yet, only the real gangsta traders out there may wanna consider going long on the pair. Conservative traders, meanwhile, may wanna sit this one out for a while.
Also, since the channel hasn’t been validated yet, there’s a higher-than-average chance that the pair may move lower instead. And if the pair does that and takes out 1.2820, then y’all may wanna bail yo shorts, if you have ’em.
In any case, just remember to proper risk management as always, a’ight? Peace!