Word up, peeps! If you’re lookin’ for more trend plays, then today’s intraday charts update is just or you ‘coz I’ve got a couple more channels, with NZD/USD na dEUR/AUD in focus.
NZD/USD has been trending ever lower for some time now. And if we connect the most recent peaks and troughs, we can see that the pair has been moving lower while inside that there descending channel.
And looking at the chart above, we can see that the pair is currently moving back up towards the channel’s resistance area, which should be somewhere around the area of interest at 0.6780.
Y’all may therefore wanna get ready to start lookin’ for opportunities to go short on the pair.
However, there’s also a chance that the pair may move back down again without ever testing the channel’s resistance area.
After all, the pair is already hesitating at the mid-channel area, which lines up with the area of interest at 0.6740. Also, stochastic is already signaling overbought conditions and all that. It’s safer to look for a chance to short at the channel’s resistance area, though.
Anyhow, also keep in mind that there’s always a risk for a topside channel breakout. And if that happens, then y’all may wanna bail yo shorts (or even switch to a bullish bias) if the pair clears 0.6830.
Okay, gonna keep it real with y’all. See that there descending channel on EUR/AUD’s 1-hour chart? Yeah, that ain’t really fresh ‘coz we first identified it way back on June 28.
If y’all can still recall, the pair was at 1.5750 back then and was just getting ready to move higher. And as y’all can see, the pair did move higher, tested the channel’s resistance, then moved back down again. So if you were able to ride that, then congratulations on bagging some pips. Aww, yeah!
And since the pair is back at the channel’s support at 1.5750, today’s play is obviously to look for opportunities to go long on the pair again. And all the more so give, that stochastic is already signaling oversold conditions and all that.
As always, the risk of a downside channel breakout is always there. And like last time, the pair would need to smash lower past 1.5660 on strong bearish momentum in order to invalidate the channel.
At any rate, y’all just make sure to practice proper risk management as always, a’ight?