Yo! I’m serving up another batch of channel patterns on the euro in today’s intraday charts update, with EUR/GBP and EUR/AUD in focus.
EUR/GBP’s recent price action has been tilting to the downside. And if we connect the most recent peaks and troughs, we can see that the pair has been bouncing up and down inside that there 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.
And lookin’ at the chart above, we can see that the pair just recently bounced off the channel’s resistance at 0.8790.
However, y’all may wanna wait for a downside move past 0.8760 before lookin’ for a chance to go short. After all, stochastic is already signaling oversold conditions and all that. And that means that there’s currently a higher-than-average chance that the pair may stage a topside channel breakout.
If a topside breakout does occur, the pair would still near to clear 0.8830. Otherwise, the risk remains high that the breakout may fail and end up being a fakeout.
EUR/AUD has been steadily trending lower lately, forming that there descending channel in the process. And as y’all can see, the pair is currently moving back down after getting rejected at the channel’s resistance at 1.5460.
Y’all better decide quick if it’s still worth it to go short on the pair. But before you do, just note that the pair is already approaching the mid-channel area. And it just so happens that the mid-channel area lines up with the area of interest at 1.5370.
And since stochastic is already signaling oversold conditions, there’s a chance that support may form at the mid-channel area and send the pair higher.
We’re still mainly bearish on the pair, though, since them moving averages are still indicating a healthy downtrend.
But as usual, just keep in mind that there’s always a chance that the pair may stage an upside channel breakout. So just be ready to bail yo shorts, especially if the pair clears the area of interest at 1.5530.
Anyhow, y’all just remember to practice proper risk management as always, a’ight? Peace out!