If you’re lookin’ for more short-term channels to play with, then I’ve got your fix since I found a couple of channels on EUR/CAD and NZD/USD in today’s intraday charts update.
EUR/CAD is apparently trending higher while bouncing up and down inside that there descending channel.
Normally, I’d tell y’all to start lookin’ for opportunities to go short if the pair is about to test the channel’s resistance area. However, there’s a good chance that the pair may move back down again without testing the channel’s resistance at 1.5650.
You see, the pair appears to be already encountering sellers at the area of interest at 1.5590. And looking at our technical indicators, we can see that stochastic is pointing back down already while the 200 SMA appears to be acting as dynamic resistance, which are additional technical arguments for further downside moves.
Of course, there’s also always a risk that the pair may stage an upside breakout instead. An upside move needs to clear 1.5750 before the breakout is confirmed, though.
NZD/USD appears to be gearing up for an upswing after getting rejected when it hit the area of interest at the 0.7300 major psychological level.
The channel’s support area hasn’t actually been hit yet, but there’s a good chance that the pair may continue moving higher. After all, stochastic is already moving back up again.
Also, if we our our handy Fibonacci tool, we can see that the 0.7300 major psychological level sits right smack on the 61.8% retracement level, which lends further support to the idea that, er, uh, support may form.
Them moving averages to be moving closer together for a potential cross-over into downtrend mode, though. There’s therefore also a risk for a downside channel breakout.
And if such a scenario plays out, then a move lower past 0.7280 would be the earliest sign that bears are taking control.
In any case, just make sure y’all remember to practice proper risk management, a’ight?