Word up, peeps! I’m serving up a couple of chart patterns in today’s intraday charts update, namely a triangle on EUR/JPY and a channel on GBP/CAD.
EUR/JPY’s price action appears to be tapering into a point. And in the process, a rather massive symmetrical triangle pattern appears to have formed.
A symmetrical triangle is just as likely to break to the upside as it is to the downside. It would therefore be prudent for y’all to prepare for both a bullish and a bearish scenario.
Whichever, direction the pair busts out off, it’s likely that the resulting breakout move will have enough momentum for a whopping 660-pip move, based on the height of the chart pattern.
Just note that a topside breakout needs to clear 131.30 before the breakout is validated. Although a move higher past 130.10 would be an early sign that bulls are taking over.
A downside breakout, meanwhile, needs to smash lower past 124.70, with a move lower past 126.70 being an early signal that bears are in control.
If trading breakouts ain’t your thing, or if you just prefer to ride trends, then heads up because an ascending channel is forming on GBP/CAD’s 1-hour chart.
Moreover, the pair is currently moving lower towards the channel’s support area, which should be at or just below the area of interest at 1.7540. And that means that y’all may wanna get ready to start lookin’ for opportunities to go long soon.
As always, there’s always a slim chance that a downside channel breakout may occur, so just be ready to bail out of yo longs, especially if the pair moves lower past 1.7430 on strong bearish momentum.
In any case, y’all just remember to practice proper risk management as always, a’ight?