If you’re lookin’ for trend plays, or if you’re lookin’ for short-term setups on the euro, then I’ve got yo fix since I’m serving up a channel + euro double special in today’s intraday charts update.
EUR/AUD’s recent price action has been noticeably tilting to the downside recently.
And if connect the most recent peaks and troughs, we can see the pair appears to be moving lower while bouncing up and down inside that there descending channel.
Also, y’all may wanna start lookin’ for opportunities to go short since the pair is currently testing the channel’s resistance area at 1.5880.
And all the more so, given that our technical indicators seem to be favoring further moves to the downside since stochastic is already moving back down after visiting overbought territory.
The moving averages, meanwhile, are still in downtrend mode. And the 200 SMA is even apparently acting as dynamic resistance to boot.
However, just keep in mind that there’s always a risk that the pair may stage an upside channel breakout.
Such a scenario seems quite unlikely at the moment. But if such a scenario does play out, then just be ready to bail yo shorts, especially if the pair validates the topside breakout by clearing 1.5950.
A fresh channel has also apparently formed on EUR/GBP’s 1-hour chart. This one’s an ascending channel, though, so we’re mainly lookin’ to go long on the pair.
And on that note, y’all may wanna get ready to start lookin’ since the pair is presently making its way down towards the channel’s support, which should be somewhere around the area of interest at 0.8760.
Do note, though, that stochastic is already signaling oversold conditions and all that. Also, the pair is currently testing the area of interest at 0.8790. There’s therefore a chance that the pair may move back up again without testing the channel’s support.
Going long without waiting for the pair to test the channel’s support is extra risky, though. So if you’re not gangsta enough, then you may wanna sit it out until the pair does test the channel’s support.
In any case, if the pair does start moving back up again, then just make sure to keep a close eye on 0.8830 since bears appear to be entrenched there.
In fact, the pair failed to reach the channel’s resistance area during the most recent swing, which implies that bears may be gearing up for a potential downside channel breakout.
If that unlikely event plays out, then a move lower past 0.8730 would be an early sign that bears are in control.
At any rate, just make sure y’all remember to practice proper risk management as always, a’ight?