I’m serving up another batch of channels in today’s intraday charts update. However, I’ve got my sights on the Greenback this time, with USD/CHF and USD/JPY in focus.
USD/CHF has been trading higher while apparently respecting that there ascending channel.
That channel ain’t fresh, though, since we actually first identified it way back on March 5. Back then, it was only a potential channel and the pair has was hovering around 0.9390.
Since then, the pair moved higher to 0.9530 and validated the channel setup, before moving back down again.
And presently, the pair appears to be moving back up again after testing the channel’s support area at 0.9430. The pair just recently left and hasn’t even reached the mid-channel area yet. Y’all should therefore decide quickly if it’s still worth it to jump in with a long.
Do note that stochastic is already signaling overbought conditions and all that, however. As such, there’s a risk that the upswing may fail and that the pair may stage a downside channel breakout instead.
If such a bearish scenario plays out, then y’all may wanna think about bailing yo longs, especially if the pair takes out 0.9360.
USD/JPY’s price action has also been tilting to the upside lately. Also, USD/JPY has been trading higher while inside an ascending channel.
And as y’all can see, the pair is presently hesitating at the area of interest at 106.40, which happens to be near the channel’s support area. There’s therefore a good chance that the pair may move back up again.
Also, if we look at our technical indicators, we can see that they lean more towards further moves to the upside since them moving averages are in uptrend move and the 100 SMA even appears to be acting as dynamic support. Stochastic, meanwhile, just left oversold territory.
If the pair does start moving back up again, just make sure to keep a close on the pair as it nears 107.20 since bears appear to have entrenched themselves there.
And as always, there’s always a small chance for a downside channel breakout. So y’all should prepare for such a scenario as well. Although a breakout ain’t confirmed until the pair smashes lower past 105.90.
In any case, just make sure y’all remember to practice proper risk management, a’ight?