Word up, dawg! I’m serving up a chart patterns + Aussie double special in today’s intraday charts update, with a triangle on AUD/CAD and a channel on AUD/USD on the menu.
If you prefer to ride trends, then heads up ‘coz an ascending channel has formed on AUD/USD’s 1-hour chart.
The pair just recently bounced off the channel’s support area at 0.7560, as y’all can see. However, y’all may wanna be extra careful since out technical indicators don’t look too good.
For starters, stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, just recently crossed-over into downtrend mode.
In addition, selling interest at 0.7600 seems to be building up. And all that increases the chance for a downside channel breakout.
If a downside breakout does occur, then a clean break past 0.7560 would be an early sign that bears are in control. The pair would still need to smash lower past 0.7520 in order to validate the breakout move and signal a potential trend change, though.
If you’re more of a breakout chartist, then check out that there symmetrical triangle on AUD/CAD’s 1-hour chart.
As y’all can see, the pair has been trending higher for a while before hitting resistance at 0.9930 and then trading sideways while tapering into a point.
Looking at our technical indicators, we can see that stochastic is moving back down after reaching overbought territory. Them moving averages, meanwhile, are coming closer together for a potential cross-over into downtrend mode.
And since the previous trend was an uptrend and since selling interest at 0.9930 seems strong, then that means that a downside breakout is more likely.
However, a symmetrical triangle is just as likely to break to the topside as the downside. It would therefore be prudent for y’all to prepare for a topside breakout scenario as well.
But if a downside breakout does occur, then bears will likely be gunning for the areas of interest at 0.9820, 0.9760, and 0.9710.
At any rate, y’all just make sure to practice proper risk management as always, a’ight?