Word up, fam! It’s a fresh week, so let’s start it right with a couple of fresh chart patterns. And in today’s intraday charts update, I’ve got my sights on NZD/USD and USD/CHF.
NZD/USD has been consolidating lately. And if we connect the most recent peaks and troughs, we can see that the pair appears to have formed a fresh symmetrical triangle for us to play with.
A symmetrical triangle is just as likely to break to the upside as it is to the downside. We therefore don’t really have a strong directional bias on the pair. In fact, it would be prudent for y’all to prepare for both upside and downside scenarios.
However, just note that an upside breakout needs to clear both 0.7300 and 0.7350 before the break is validated. Otherwise, the risk remains high that the breakout may end up being a fakeout.
A downside break, meanwhile, needs to smash lower past 0.7150 before y’all can chillax.
If you’re more of a trend rider, or if trading breakouts just ain’t your thing, then check out that there ascending channel on USD/CHF’s 1-hour chart.
Presently, the pair appears to be making its way back down again. And if that is indeed the case, then them bears will likely be gunning for the channel’s support area, which should be somewhere around the area of interest at 0.9480.
However, there’s also a chance that the pair may move back up again without pulling back since the pair appears to be hesitating at 0.9530, which is another area of interest.
And looking at our technical indicators, we can also see that them moving averages are already in uptrend mode and the 100 SMA even appears to be acting as dynamic support. Moreover, stochastic is already signaling overbought conditions and all that. In other words, our technical indicators are supportive of a potential upswing soon.
However, it should also be noted that the pair failed to reach the channel’s resistance area. And this may mean that bulls are losing steam and/or bears are beginning to win out. Y’all may also therefore wanna prepare for a possible channel breakout. Although the channel break will only be confirmed if the pair moves lower past 0.9440.
Whichever scenario plays out, just make sure y’all remember to practice proper risk management as always, a’ight? Peace!