Sup, fam! Let’s start this week’s intraday charts update with a couple of fresh chart patterns, namely a triangle on CAD/CHF and a double bottom on EUR/USD.
CAD/CHF has been trending lower lately. However, the downtrend stalled when the pair encountered support at 0.7540.
Them bears ain’t ready to give up just yet, though, since they have been pushing the pair back down every time the pair tries to climb higher, resulting in ever lower peaks.
And if we connect those peaks, we can see that a fresh descending triangle pattern appears to have formed for us to play with.
As the name implies, a descending triangle is mainly a bearish pattern, so we’re also mainly bearish on the pair. Basically, we’re lookin’ to go short if the pair breaks lower past 0.7540, ideally on strong bearish momentum.
Do note, however, that there’s always a risk that the pair may break to the topside instead. And a move past 0.7650 is the earliest sign that bulls are taking control. Although the upside breakout ain’t confirmed until and unless the pair also takes out 0.7690.
In any case, y’all just remember to practice proper risk management as always, a’ight?
EUR/USD recently rushed to the downside. However, bearish momentum quickly lost steam when the pair encountered support at 1.1560.
Bears regrouped at 1.1630 and tried to push the pair back down again. However, 1.1560 held as support and the pair began making its way back up again, forming that there double bottom pattern
There’s therefore a good chance that the pair may stage a reversal and climb even higher.
If the pattern is validated by a move higher past 1.1630, then that likely means that bulls may be gunning for the next area of interest at 1.1740. And if the pair clears that as well, then that means that them bulls are shooting for 1.1840 next.
Looking at our technical indicators, however, it seems like they favor further downside moves since stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, recently crossed-over into downtrend mode.
Y’all may therefore wanna prepare for a trend continuation scenario as well, especially if the pair smashes lower past 1.1560.