It’s a brand spankin’ new week! And I’m starting this week’s intraday charts update with a Swissy + chart pattern double special, with USD/CHF and EUR/CHF in focus.
Back then, the pair was approaching the channel’s support area, which was just under the area of interest at 0.9530. And since then, 0.9530 acted as support and the pair moved higher for over 110 pips. And if you were able to jump in with a long, then congratulations. Aww, yeah!
Anyhow, the pair actually failed to test the channel’s resistance area since bears have apparently entrenched themselves at 0.9640.
And since the channel is still intact, and since the pair is moving back down again, today’s play is therefore to play the channel again by waiting for support to form at 0.9530 and then lookin’ for opportunities to go long again. And all the more so, given that stochastic is already signaling oversold conditions and all that.
As always, there’s a risk that the pair may stage a downside channel breakout. And if that happens, then just be ready to bail yo longs and switch to a more bearish bias, especially if the pair moves lower past 0.9490 since a move lower past that area of interest would validate the downside channel breakout, as well as confirm what appears to be a double top formation.
And once 0.9490 is cleared, then bears will likely be gunning for 0.9430 next.
IS EUR/CHF gearing up for an upside move? Well, that appears to be the case since an ascending triangle has apparently formed on the pair’s 1-hour chart.
As the name implies, an ascending triangle pattern is mainly a bullish pattern, so we’re waiting for a clear break past resistance at 1.1880 so that we can go long on the pair.
However, it should be stressed that there’s also a risk for a downside breakout. Even so, don’t be too quick to jump in with a short since bulls may be waiting at the area of interest at 1.1830, which also happens to sit right smack on the 50% Fibonacci retracement level.
In any case, just remember to always practice proper risk management, a’ight? Peace!