If you’re looking for more chart patterns to play with, then I’ve got your fix ‘coz I’m serving up a triangle on NZD/CAD and a channel on AUD/USD in today’s intraday charts update.
Is NZD/CAD gearing up for further moves to the downside? Well, that appears to be the case since a descending triangle has recently formed on the pair’s 1-hour chart.
As the name implies, a descending triangle is a bearish forex chart pattern, so we’re mainly lookin’ to go short on the pair if support at 0.9290 is broken.
And looking at our technical indicators, there does seem to be a good chance for a downside move since them moving averages are already in downtrend mode. Stochastic, meanwhile, is moving back down again after visiting overbought territory.
Do note, however, that there’s no guarantee for a downside breakout. In fact, there’s also a slim chance that the pair may break to the upside instead.
If such a scenario plays out, then y’all may wanna think about bailing yo shorts if the pair moves higher past 0.9410. Y’all may even wanna think about switching to a more bullish bias on the pair. Although the upside break still needs to clear 0.9510 before the break is validated.
As y’all can see, AUD/USD has been trending lower recently while apparently respecting that there descending channel.
As y’all should know by now, one of the more conservative ways to play a descending triangle is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
That ain’t the case in today’s setup, though, since the pair is presently at the channel’s support area. Still y’all may wanna put this pair on yo watchlist.
Anyhow, if the pair does move up, then them bulls will likely be gunning for the channel’s support area, which should be somewhere around the area of interest at 0.7850. Although there’s also a chance that resistance may form at 0.7780 instead since that price area has also seen some market interest in the recent past.
Of course, there’s also always the risk for an upside channel breakout. Such a scenario seems unlikely at the moment, though. But all the same, just be ready to bail yo shorts if the pair moves higher past 0.7900.
In any case, just make sure y’all remember to practice proper risk management as always, a’ight?