Word up, peeps! If you’re lookin’ for short-term chart pattern setups on the euro, then you may wanna check out today’s intraday charts update ‘coz I’ve got a triangle on on EUR/AUD and a channel on EUR/NZD. Get ’em while they’re still fresh.
Looks like price action on EUR/AUD is consolidating into a point, forming that there symmetrical triangle.
And as most of y’all already know, a symmetrical triangle means that bulls and bears are roughly balanced, so the pair could break in either direction.
Looking at our technical indicators, however, we can see that them moving averages are indicating a healthy uptrend. Stochastic, meanwhile, is moving back up after visiting oversold territory. An upside breakout therefore seems like a more probable scenario for now.
Still, it doesn’t hurt to prepare for both a downside breakout scenario, as well as an upside breakout scenario.
As for key price levels to watch before y’all can chillax after a breakout does occur, 1.5750 is the price area to watch for an upside breakout. A downside breakout, meanwhile, needs to smash lower past 1.5590, ideally on strong bearish momentum.
EUR/NZD has been trading ever higher while respecting that there ascending channel on its 1-hour chart. And presently, the pair is moving back up after bouncing off the channel’s support area at 1.6820.
The pair is already at the mid-channel area, so it may not be worth it to jump in with a long, but that’s up to you.
Also, the pair is already encountering sellers at the mid-channel area, though, so there’s a chance that the pair may move back down to retest the channels support area before moving back up again. Y’all may therefore wanna put this pair on yo watchlist.
Having said that, just remember that there’s always a risk of a downside channel breakout.
Such a scenario seems unlikely at the moment since stochastic just left oversold territory while them moving averages just recently crossed-over into uptrend mode. But if a downside breakout does occur, then a clear break lower past 1.6770 would be an early sign that the trend is shifting towards a more bearish direction.
In any case, y’all just remember to practice proper risk management as always, a’ight? Peace out!