Yo! I’m starting this week’s intraday charts update with a USD + comdoll + triangle triple special. How cool is that?
Is AUD/USD gearing up for a potential upside move? Well, it sure seems like it since an ascending triangle has recently formed on AUD/USD’s 1-hour chart.
As the name implies, an ascending triangle is a bullish chart pattern. We’re therefore lookin’ mainly to go long on the pair if (or when) the pair clears 0.7560 on strong bullish momentum.
Looking at our technical indicators, however, we can see that stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, just recent crossed over into downtrend mode. Also, the previous trend was a downtrend.
Given all that, there’s therefore a chance that the pair may break to the downside instead. And y’all may therefore wanna prepare for such a scenario as well.
If a downside breakout does occur, then a move lower past 0.7480 would be an early sign that bears are in control. However, the pair still needs to smash lower past 0.7410 before the breakout is confirmed and y’all can chillax a bit.
A symmetrical triangle appears to have formed on USD/CAD’s 1-hour chart. Well, “symmetrical-ish” would probably be more accurate since the triangle ain’t really all that symmetrical.
Anyhow, a symmetrical-ish triangle means that bulls and bears are playing a game of tug-o-war. However, neither side is really winning out.
As such, the pair is just as likely to break to the upside as it is to the downside. It would therefore be prudent for y’all to prepare for both scenarios.
Just remember, however, that a topside breakout needs to clear 1.2980. Otherwise, the risk remains high that the breakout may fail and end up being a fakeout.
A downside breakout, meanwhile, needs to break lower past 1.2730, ideally on strong bearish momentum.
Whichever scenario plays out, just remember to practice proper risk management as always, a’ight?