Word up, fam! I’m kickstarting this week’s intraday charts update with a couple of triangle patterns on EUR/GBP and AUD/NZD. Check ’em!
After surging higher and hitting resistance at 0.8790, EUR/GBP started trading sideways while apparently tapering into a point.
And in the process, a fresh symmetrical triangle has formed for us to play with.
A symmetrical triangle may break either to the upside or the downside. As such, we don’t really have a strong directional bias on the pair. In fact, it would even be prudent for y’all to prepare for both upside and downside scenarios.
Just note that an breakout needs to clear 0.8790, ideally on strong bullish momentum. Unless that happens, there’s a good chance that the breakout move may fail and end up being a fakeout. A downside breakout, meanwhile, needs to smash lower past 0.8740.
Another symmetrical triangle has formed on AUD/NZD’s 1-hour chart, which means that bulls and bears are also playing a game of tug-o-war on AUD/NZD.
And again, a symmetrical means that neither bulls nor bears have the clear advantage. As such, an upside breakout is just as likely to occur as a downside breakout.
Looking at our technical indicators, however, it looks like an upside breakout is more probable at the moment since them moving averages are indicating a healthy uptrend. Stochastic, meanwhile, is about to reach oversold territory already.
In any case, just remember that an upside break needs to clear 1.0670 while a downside move needs to move lower past 1.0710 before y’all can chillax.
And as always, just make sure y’all remember to practice proper risk management as always, a’ight?