Yo! In today’s intraday charts update, we’ll be taking a stroll down memory lane as we check up on our old setups on CAD/CHF and NZD/CAD. Of course, it goes without saying that we’ll be lookin’ for fresh plays as well.
If y’all can still recall, we identified an ascending triangle CAD/CHF’s 1-hour chart two days ago. And back then, we were waiting for the pair to move higher past 0.7560 so that we can jump in with a long.
Well, check that out, dawg. That’s right! The pair did clear 0.7560 and then moved higher for over 90 pips. So if you were able to ride that upswing, then congratulations on bagging some delicious pips. Aww, yeah!
Anyhow, if we take the most recent price action into account, we can see that an ascending channel has apparently formed. Not only that, the pair is currently hesitating at the channel’s resistance area, which happens to line up with the 0.7650 minor psychological level.
It’s therefore likely that the pair may be moving back down soon. And that means that y’all better get ready to start lookin’ for opportunities to go long if (or when) the pair does move back down to the channel’s support area, which should be at or just above 0.7560.
As always, do keep in mind that the risk for a downside channel breakout is ever-present, so just be ready to bail yo longs (or switch to a bearish bias) if the pair moves lower past 0.7460.
We discovered a descending triangle pattern on NZD/CAD’s 1-hour chart way back on April 3. And we were waiting to go short if the pair moves lower past 0.9290.
Well, the pair took its sweet time, but the pair did eventually break to the downside. Bearish momentum didn’t really pick up, though, and the pair eventually began to trade somewhat sideways while tilting to the downside.
And if we connect the most recent peaks and troughs, we can see that the pair appears to be moving lower while trapped inside a descending channel.
The pair has yet to reach the channel’s support area at 0.9320. Even so, there’s a good chance that the pair may be moving back down again sooner or later since the pair appears to be encountering sellers at 0.9290. Also, stochastic is pointing back down again after reaching overbought territory.
Just note that a move higher past 0.9360 would invalidate the descending channel and signal that bulls are in control, so y’all may wanna prepare for that as well.
At any rate, just remember to always practice proper risk management, a’ight? Peace!