Chart pattern time! I’m serving up a channel on EUR/NZD and a wedge on USD/CHF in today’s intraday charts update. Get ’em while they’re still fresh.
If you’re a breakout chartist, then feast your eyes on that there rising wedge on USD/CHF’s 1-hour chart.
A rising wedge is generally considered a bearish pattern. And since the trend before the pattern formed is a rough uptrend, then that means that the rising wedge also serves as a reversal pattern. So, sound reversal alert, yo!
Anyhow, if the pattern does break to the downside, then it still needs to clear 0.9430 and then 0.9350 before y’all can sit back and chillax. Otherwise, the risk remains high that the breakout may ending up being a fakeout instead.
However, do note that even though a rising wedge is considered a bearish pattern, there’s always a small chance that the pair may break to the upside instead. Y’all may therefore wanna plan ahead for such a scenario, especially if the pair clears 0.9570 on strong bullish momentum.
If trading breakouts ain’t really your thing and if you’re more of a trend ride, then check out that there ascending channel on EUR/NZD’s 1-hour chart.
The pair is still actually near the channel’s resistance area. Still, y’all may wanna put this setup on your watch list since the pair appears to be respecting the channel’s resistance and stochastic is already signaling overbought conditions and all that, which point to the possibility of a pullback.
If a pullback does happen, then them bears will likely be gunning for the channel’s support, which should be somewhere close to the area of interest at 1.7070. And if the pair does go all the way down and 1.7070 holds as support, then that would be a good time to start lookin’ for opportunities to go long on the pair.
But as always, the risk for a downside channel breakout is there, so just be ready to bail yo longs if support doesn’t form at 1.7070 and the pair moves lower past 1.6990.
At any rate, just remember to practice proper risk management as always, a’ight?