Word up, peeps! Let’s get this week’s intraday charts update rolling with a couple of short-term chart pattern on the Kiwi, with NZD/CAD and GBP/NZD in focus.
NZD/CAD’s recent price action has been tapering into a point it seems, forming that there symmetrical triangle for us to play with.
A symmetrical is just as likely to break in either direction so 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.
Having said that, just note that a topside breakout needs to clear the 0.9100 major psychological level before the breakout is confirmed. Although a move higher past 0.9060 would be an early sign that bulls are taking control.
A downside breakout move, meanwhile, needs to smash lower past 0.8990, ideally on strong bearish momentum.
Whichever scenario plays out, just make sure y’all remember to practice proper risk management, a’ight?
GBP/NZD has been trending lower recently. However, the pair appears to have found support at 1.9260 since the pair tried to break lower on two different occasions and failed both times.
If the pattern is validated by a move higher past 1.9350, then the area of interest at 1.9410 would be next. And if the pair clears that as well, then that means that them bulls are likely gunning for 1.9530 and then 1.9740.
Looking at our technical indicators, however, it seems like they favor further downside moves since stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, are still in downtrend mode. And it looks like the 100 SMA may even act as dynamic resistance.
Y’all may therefore wanna prepare for a trend continuation scenario as well, especially if the pair smashes lower past 1.9260.