If you’re a trend rider, then you may wanna check out today’s intraday charts update ‘coz I found a couple of channel’s on EUR/CAD and AUD/NZD.
EUR/CAD has been steadily moving higher while trapped inside an ascending channel.
And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long near the channel’s support area. And as y’all can see, the pair is already making its way up after testing the channel’s support.
Before y’all jump in, just note that stochastic is already signaling overbought conditions and all that. Also, there seems to be a lot of selling interest at 1.5350. What I’m getting at here is that there’s a chance that the pair may move back down to test the channel’s support at 1.5280.
However, that also means that there’s a higher-than-average chance for a downside channel break. Y’all may therefore wanna prepare for that scenario as well, especially if the pair validates the downside break by smashing lower past 1.5220.
A descending channel is about to form on AUD/NZD’s 1-hour time frame, as y’all can see on that there chart.
The pair has to test the would-be channel’s support area before the channel gets validated. But as y’all can see, the pair found buyers at 1.0780 and is moving back up again.
The pair is already hesitating at the area of interest at 1.0850, though, so sellers may start to kick the pair back down again sooner or later.
However, there’s also a risk that the bulls may try to complete a double bottom pattern by pushing the pair above 1.0900. If that happens, then y’all may wanna think about switching to a more bullish bias. The pair would still need to clear 1.0940 in order to signal a possible trend change, though.
Anyhow, y’all just make sure to practice proper risk management as always, a’ight?