Today’s intraday charts updates is for the breakout chartists out there ‘coz I’m serving up a couple of triangle patterns, with GBP/CHF and NZD/CAD in focus.
GBP/CHF has been trading somewhat sideways lately while apparently tapering into a point, giving us that there symmetrical triangle to play with.
Well, the triangle is not perfectly symmetrical, so “symmetrical-ish” would probably be a more accurate description of the chart pattern.
Anyhow, a symmetrical-ish triangle means that bulls and bears are fighting it out but neither side is really winning out. As such, the pair could potentially break in either direction, which means y’all shouldn’t really have a strong directional bias on the pair.
With that said, the resulting breakout move will likely have enough momentum for a 100-pip run, based on the height of the chart pattern.
Do note, however, that a downside breakout needs to move lower past the areas of interest at 1.3130 and 1.3060 before y’all can chillax. You see, unless the pair clears those levels, the risk remains high that the breakout may end up being a fakeout.
An upside breakout, meanwhile, needs to clear 1.3270, ideally on strong bullish momentum.
As y’all can see, NZD/CAD’s recent climb faltered when the pair encountered resistance at 0.9170.
Them bulls ain’t ready to give up just yet, though, since they have entrenched themselves at 0.9090 and have been fighting off the bears’ attempts to push the pair lower. And in the process, a fresh symmetrical triangle pattern has apparently formed.
Again, a symmetrical triangle could break either to the topside and continue the uptrend or signal a potential reversal by breaking to the downside. It would therefore be prudent for y’all to prepare for both scenarios.
Just note that a downside breakout needs to also take out support at 0.9090, while an upside breakout needs to also smash higher past resistance at 0.9170.
In any case, y’all just remember to practice proper risk management as always, a’ight? Peace out!