Yo! The chart pattern party ain’t over yet ‘coz I’ve got a triangle on USD/CHF and a channel on NZD/CAD in today’s intraday charts update.
USD/CHF’s price action appears to be tapering into a point, forming that there descending triangle pattern.
As the name implies, a descending triangle is a bearish forex chart pattern. Our main directional bias is therefore to the downside.
Looking at our technical indicators, we can see that stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, are still in downtrend mode. Our technical indicators therefore support further moves to the downside.
Y’all may therefore wanna get ready to start lookin’ for opportunities to go short if (or when) the pair moves lower past support at 0.9830, ideally on strong bearish momentum.
However, there’s always a risk that the pair may break to the topside instead. And if that happens, then a move higher past 0.9930 would confirm the topside breakout and invalidate the triangle.
NZD/CAD has been moving higher while bouncing up and down inside that there ascending channel.
And as y’all can see, the pair just recently bounced off the channel’s support at 0.9060. Y’all may therefore wanna start lookin’ for a chance to go long. And all the more so, given that stochastic is already signaling oversold conditions. Moreover, the 100 SMA appears to be acting as dynamic support.
Just make sure to keep a close eye on how the pair reacts to 0.9100 since sellers appear to be entrenched around that price area.
And while a downside breakout seems unlikely at the moment, the risk is always there, so just get ready to bail yo longs if the pair continues to move lower past 0.9030.
In any case, y’all just make sure to always practice proper risk management, a’ight? Peace!