I’m serving up a couple more channels in today’s intraday charts update, with EUR/NZD and GBP/NZD in focus. I guess that means I’ve got a channels + Kiwi + European currencies triple combo. That’s so dope!
EUR/NZD has been in a downtrend for a while now. Not only that, the pair has been trending lower while trapped inside that there descending channel.
And looking at the chart above, we can see that the pair is close to the channel’s resistance area at 1.6670. Also, stochastic is about to reach overbought territory.
Y’all are probably thinking about lookin’ for opportunities to go short on the pair. However, just note that bulls appear to have entrenched themselves at 1.6610. It would therefore be safer if y’all also wait for a break lower past 1.6610 before lookin’ for a chance to short.
And since buying interest appears strong at 1.6610, that means that there’s a higher-than-average chance for a topside channel breakout. Y’all may therefore wanna plan ahead for such a scenario.
If an upside move does occur, then a move higher past 1.6770 would be an early sign that bulls are taking over. However, y’all may also wanna wait until the pair clears 1.6890 before y’all can kick back and chillax.
GBP/NZD has also been trending ever lower while inside a descending channel. And as y’all can see, the pair is currently testing the channel’s resistance at 1.9070.
And if we look at our technical indicators, we can see that them moving averages are still indicating a healthy downtrend. Stochastic, meanwhile, is already signaling overbought conditions and all that.
Given all that, y’all may therefore wanna start lookin’ for opportunities to go short on the pair.
However, just keep in mind that the possibility of a topside breakout is always there. It’s just rather unlikely at this point.
But in the unlikely event that the pair does stage a topside breakout, then a move higher past 1.9150 would be an early warning sign to start thinking about bailing yo shorts. The pair still needs to clear 1.9260 in order to validate the breakout move, though.
Anyhow, y’all just make sure to always practice proper risk management, a’ight?