Yo! If you’re a trend rider, then you may wanna check out today’s intraday charts update ‘coz I’m serving up a couple of channels on EUR/AUD and USD/JPY.
EUR/AUD has been trending lower for a few days now. And if we connect the most recent peaks and troughs, we can see that the pair has been moving lower while trapped inside a 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 at or close to the channel’s resistance area.
Y’all may therefore wanna start lookin’ since the pair is currently testing the channel’s resistance area. And all the more so, given that the channel’s resistance area happens to line up with the area of interest at 1.5930.
Also, if we look at our technical indicators, we can see that that stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, are still indicating a healthy downtrend. Our technical indicators are therefore supportive of further moves to the downside.
But as always, just keep in mind that there’s always a small chance that the pair may stage an upside channel breakout. Such a scenario seems unlikely at the moment, but just be ready to bail yo shorts if the pair clears 1.5980 on strong bullish momentum.
USD/JPY has been trading ever higher while bouncing up and downside inside that there ascending channel.
And as y’all can see, the pair is currently testing the channel’s support area at the 109.00 major psychological level. And so far, supports appears to be holding.
Y’all may therefore wanna think about lookin’ for opportunities to go long on the pair. And all the more so, given that stochastic is already moving back up after visiting oversold territory.
However, do note that them moving averages just recently crossed-over into downtrend mode. And that increases the chance for a downside channel breakout.
Y’all may therefore wanna prepare for such a scenario as well. And a strong bearish move past 108.50 would be an early sign that bears are in control.
In any case, just make sure y’all remember to practice proper risk management as always, a’ight?