I’ve got a triangle for the breakout chartists out there in today’s intraday charts update. Trend playas, meanwhile, may wanna check out the channel I found on GBP/NZD’s chart.
EUR/CHF has recently been trading sideways. But if we connect the most recent peaks and troughs, we can see that the pair’s price action has been tapering into a point. And in the process, a symmetrical triangle pattern has formed.
A symmetrical triangle means that bulls and bears are fightin’ it out, but neither side is really winning … for now. And if one side does finally give way, then that will likely result in a breakout.
However, them bears are just as likely as the bulls to win. As such, a downside breakout is just as likely as an upside breakout. Whichever scenario plays out, the resulting rally or selloff will likely have enough steam for a 230-pip move.
Do note, however, that an upside breakout needs to clear past 1.1650, ideally on strong bullish momentum. A downside move past 1.1480, meanwhile, would be an early sign that bears are winning out. However, the pair also needs to move lower past 1.1370 before the breakout is considered the real deal.
GBP/NZD’s price action has been tilting to the upside while apparently trapped inside that there ascending channel.
And as y’all can see, the pair appears to be moving back up again after almost reaching the channel’s support area just below the area of interest at 1.9470.
Y’all better decide quick if it’s still worth it to go long on the pair. But before you do, take note that stochastic is already signaling overbought conditions and all that. And that means that there’s a chance that the pair may move back down to retest the channel’s support.
However, that also means that there’s a higher-than-average chance for a downside channel breakout. So y’all just be ready to bail yo longs if a downside breakout does occur and the pair moves lower past 1.9410 and 1.9320.
In any case, y’all just make sure to practice proper risk management as always, a’ight?