The chart pattern train ain’t got no brakes! And in today’s intraday charts update, I’ve got a triangle on CHF/JPY and a channel on EUR/CAD. Check ’em out!
If you’re a breakout chartist, then check out that there symmetrical-ish triangle on CHF/JPY’s 1-hour chart.
As y’all should know by now, a symmetrical triangle may break either to the upside or the downside, so we don’t really have a strong directional bias on the pair. Y’all may therefore wanna prepare for both an upside and downside scenario.
Looking at recent price action, as well as our technical indicators, we can see that the previous trend before the pattern formed was a downtrend.
And if the pair want to continue moving lower, it needs to break lower past the triangle and then smash lower past 110.60, ideally on strong bearish momentum.
Them moving averages just recently crossed-over into uptrend mode, though, so there’s also a chance for an upside move, which is why I wrote earlier that y’all may wanna prepare for an upside scenario as well.
Anyhow, a mover higher past 111.50 would be an early sign that bulls are winning out. However, the pair would still need to clear the 112.00 major psychological level before the breakout is confirmed.
If you’re not really a breakout chartist, or if riding trends is more your thing, then y’all may like that there descending channel on EUR/CAD’s 1-hour chart.
The pair is presently testing the channel’s support area, though. So unless you’re gangsta enough to go long here, then it would probably be for the best if y’all just put this on yo watch list.
Anyhow, if the channel’s support does hold, then them bulls will likely be gunning for the channel’s resistance area, which should be somewhere near the 1.5850 minor psychological level.
If the pair does get there, then that’s the best time to start lookin’ for opportunities to go short.
However, just remember that there’s always a chance for an upside channel breakout. And if that happens, then just be ready to bail yo shorts, especially if the pair moves higher past 1.5940.
At any rate, just make sure y’all remember to practice proper risk management as always, a’ight? Peace! I’m out!