Sup, peeps! If you’re a breakout chartist, then you may wanna check out today’s intraday charts update ‘coz I’ve got a couple of triangles on EUR/AUD and USD/JPY on today’s menu.
EUR/AUD has been trading somewhat sideways in the past few days. Price action appears to be tapering into a point, though, giving us that there symmetrical triangle pattern to play with.
Looking at our technical indicators, we can see that the moving averages are still in downtrend mode and the 200 SMA even seems to be acting as dynamic resistance. Stochastic, meanwhile, is coming closer to overbought territory.
Our indicators therefore seem to support further moves to the downside. Just note that a downside break needs to move lower past 1.5780, ideally on strong bearish momentum.
Also, do note that a symmetrical triangle is just as likely to break to the upside as the downside. Y’all may therefore wanna prepare for an upside scenario as well. And if an upside breakout does occur, then the 1.6050 minor psychological level is the price area to watch.
USD/JPY’s journey to the upside appears to have stalled after the pair got rejected at 107.70. And if we connect the most recent peaks and troughs, we can see that price action appears to be forming into a symmetrical triangle pattern.
The recent trend before the pair began trading sideways was an uptrend. We’re therefore mainly bullish on the pair. And all the more so, given that them moving averages are still indicating a healthy uptrend.
However, a symmetrical triangle also means that bulls and bears are fighting it out, but there’s no clear winner. As such, there’s also a good chance that the pair may break to the downside instead. And it would therefore be prudent for y’all to prepare for both scenarios.
Anyhow, an upside breakout needs to clear 107.70. Otherwise, the risk remains high that the breakout move may stall and end up being a fakeout.
A downside breakout move, meanwhile, needs to smash lower past 106.60 before y’all can chillax.
Whichever scenario plays out, just make sure y’all remember to practice proper risk management as always, a’ight? Peace!