If you’re looking for short-term chart patterns on the Aussie, then I’ve got your fix ‘coz I’ve got a channel on AUD/USD and a triangle on AUD/CAD in today’s intraday charts update.
AUD/USD’s price action has been tilting slightly to the downside in the last few days. And as y’all can see in the chart above, the pair appears to be respecting that there descending channel.
As y’all probably know by now, one of the more conservative ways to play a descending channel is to look for opportunities to go short when price is at or close to the channel’s resistance area.
Well, check that out, dawg. That’s right! The pair is currently testing the channel’s resistance at 0.7410. Y’all may therefore wanna start lookin’ for opportunities to go short on the pair. And all the more so, given that stochastic is already signaling overbought conditions and all that.
If 0.7410 does hold as support, and if the pair does move back down, then y’all just make sure to keep an eye on how the pair reacts to the area of interest at 0.7350, a’ight?
Also, do keep in mind that there’s always a chance that the 0.7410 may fail to hold as resistance, allowing the pair to stage a topside channel breakout. That seems unlikely at the moment. But if such a scenario plays out, then a strong move higher past 0.7440 would be a sign that bulls are taking control.
If playing trends just ain’t your thing, then you may like that there symmetrical triangle pattern on AUD/CAD’s 1-hour chart.
And looking at our technical indicators, however, we can see that them moving averages are still indicating a healthy downtrend. Stochastic, meanwhile, has already reached overbought territory.
Our technical indicators are therefore pointing to a higher probability of a downside triangle breakout.
However, do note that the pair is just as likely to break to the topside as the downside from a symmetrical triangle. As such, we shouldn’t really have a strong directional bias on the pair. In fact, it would even be a good idea to prepare for both topside and downside breakout scenarios.
Anyhow, an upside breakout needs to move higher past 0.9740 and then 0.9780 in order to validate the breakout move. A downside move, meanwhile, only needs to smash lower past 0.9660 in order to confirm the break.
At any rate, y’all just make sure to practice proper risk management as always, a’ight? Peace out!