Yo! I’m serving up a chart pattern + euro double special in today’s intraday charts update, with EUR/USD and EUR/CHF in focus.
EUR/USD has been steadily trending lower in the past few days. Not only that, the pair has been doing so while apparently respecting that there descending channel.
And as y’all should know by now, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is close to the channel’s resistance area.
Well, check that out, dawg. That’s right! The pair is currently hesitating at the channel’s resistance area. Moreover, the channel’s resistance area lines up rather nicely with the 1.2000 major psychological level.
Y’all may therefore wanna start lookin’ for opportunities to go short. And all the more so, given that stochastic is about to enter overbought territory.
And while it’s unlikely that the pair may stage an upside channel breakout, the possibility is always there. So y’all just be ready to bail yo shorts if the pair clears 1.2060 after staging a topside breakout.
The uptrend on EUR/CHF stalled after hitting the area of interest at the 1.2000 major psychological level. The pair then began trading sideways after that.
However, the pair’s recent price action appears to be tapering into a point. And if connect the most recent peaks and troughs, then we get that there symmetrical-ish triangle to play with.
A symmetrical triangle pattern means that bulls and bears are battling for supremacy but neither side has a clear advantage. As such, the pair is just as likely to breakout to the upside as the downside. We therefore don’t really have a strong directional bias on the pair. In fact, it would be prudent to prepare for both upside and downside scenarios.
However, just note that an upside breakout needs to clear 1.2000 in order to validate the breakout. A downside breakout, meanwhile, needs to smash lower past 1.1930. If the pair fails to take out those areas of interest, then the risk remains high that the breakout move may end up being a fakeout.
In any case, just make sure y’all remember to practice proper risk management, a’ight? Peace! I’m out!