Wassup, dawg! I’m starting the new week with a couple of fresh chart patterns on AUD/USD and EUR/CHF. Get ’em while they’re still hot!
If you’re a breakout chartist, then heads up because a fresh symmetrical triangle has formed on AUD/USD’s 1-hour chart.
A symmetrical triangle means that bulls and bears are fighting it out, but neither side has an advantage… for now. And that means that the pair is just as likely to break to the upside as the downside. Y’all may therefore wanna prepare for both scenarios.
Looking at our technical indicators, however, it looks like a topside breakout seems more likely at the moment. After all, them moving averages are still in uptrend mode and the 200 SMA even appears to be acting as dynamic support. Also, stochastic is already signaling oversold conditions and all that.
Even so, it would still be prudent for y’all to prepare for a downside breakout scenario as well.
Anyhow, a topside breakout needs to clear the 0.7600 major psychological level in order to validate the breakout move. A downside breakout, meanwhile, needs to smash lower past 0.7500 before y’all can chillax for a bit.
If trading breakouts ain’t your thing, or if you’re bearish on the euro, then check out that there descending channel on EUR/CHF’s 1-hour chart.
The pair has already pushed away from the channel’s resistance at 1.1630 and is already at the mid-channel level at 1.1560. Y’all better decide quick if it’s still worth it to jump in with a short.
And if you decide that going short is too risky, then now worries ‘coz stochastic is already signaling oversold conditions and the pair already appears to be hesitating at the mid-channel area. There’s therefore a chance that the pair may pull back up to test the channel’s resistance area again.
As always, there’s a risk that the pair may stage an upside channel breakout. So just be ready to bail yo shorts (or switch to a bullish bias) if the pair keeps moving higher and takes out 1.1690 on strong bullish momentum since that’s a sign that bulls may be taking over.
In any case, just make sure y’all remember to practice proper risk management as always, a’ight?