Yo! If riding trends is your thing, then you may wanna check out today’s intraday charts update ‘coz I’m serving up a couple of channels on EUR/NZD & GBP/USD.
EUR/NZD’s price action has been tilting to the downside in the past few dayws. And if connect the most recent peaks and troughs, we can see that the pair appears to be trapped inside a descending channel.
And as y’all can see, the pair is presently testing the channel’s resistance area at 1.6880. Y’all may therefore wanna start lookin’ for opportunities to go short on the pair.
However, do note that the pair has been closing above the moving averages. Not only that, the moving averages appear to be moving closer together for a potential cross-over into uptrend mode.
In other words, bullish interest appears to be building up, which increases the chance that the pair may stage an upside channel breakout.
And in the unlikely event that the pair does break to the upside, then a move past 1.6920 would be an early signal that bulls are taking control.
And if the pair then clears 1.6970 after that, then y’all may wanna bail yo shorts (if you still have ’em) since a move past that area of interest would validate the upside channel breakout and may entice more bulls to charge in.
GBP/USD has been steadily trending higher while respecting that there ascending channel on it’s 1-hour chart. And presently, the pair appears to be pulling back after testing the channel’s resistance area.
Bears are likely gunning for the channel’s support area, which should be somewhere around the area of interest at 1.4280. Y’all may therefore keep an eye on that price level since bulls will likely also be waiting there in order to push the pair higher.
However, there’s a risk that the pair may move back up again without testing the channel’s support. After all, stochastic is moving back up again after visiting oversold territory. Moreover, the pair already appears to be hesitating at the mid-channel area.
Going long at the mid-channel area is extra risky, though, so only gangsta traders may wanna try that. Conservative traders, meanwhile, are recommended to sit it out until the pair tests the channel’s support.
And while the chance of a downside breakout appears to be slim at the moment, the risk is always there, so just be ready to bail yo longs if the pair moves lower past 1.4230.
At any rate, just make sure y’all remember to practice proper risk management, a’ight?