If you’re a breakout chartist, then you may wanna check out today’s intraday charts update since I found a couple of triangles on EUR/USD and EUR/CHF.
EUR/USD has been trading somewhat sideways in the past few weeks. But if we focus on the most recent price action, we can see that the pair appears to be tapering into a point, giving us that there symmetrical triangle to play with.
As y’all should know by know, a symmetrical triangle pattern means that bulls and bears are fighting it out. However, neither side is really winning out, which means that the pair is just as likely to break to the upside as it is to the downside.
As such, we don’t really have a strong directional bias on the pair. And it would even be prudent for y’all to prepare for both an upside and a downside breakout.
Just note that the pair needs to clear the area of interest at 1.2450 before the upside breakout is validated. If the pair fails to do that, then the risk remains high that the breakout may end up being a fakeout.
A downside breakout, meanwhile, should smash 1.2270, ideally on strong bearish momentum, before the break is confirmed and y’all can chillax.
A triangle has also apparently formed on EUR/CHF ‘s 1-hour chart. This one’s a bit different, though, since this one’s a descending triangle.
As the name implies, a descending triangle is a bearish chart pattern. We’re therefore mainly bearish on the pair, and we’re lookin’ to go short if the pair breaks lower past 1.1680.
However, the risk is always there that the pair may break to the upside instead. So it would be wise to prepare for such a bullish scenario as well, especially if the pair signals that it’s resuming its uptrend by moving higher past 1.1740.
Whichever scenario plays out, just make sure y’all remember to practice proper risk management, a’ight? Peace!