Yo! If you’re a breakout chartist, then you may wanna check out today’s intraday charts update ‘coz I’m serving up a couple of triangles, with AUD/USD and AUD/JPY in focus.
AUD/USD’s recent price action appears to be tapering into a point, forming that there symmetrical triangle pattern in the process.
As you may or may not know, a symmetrical triangle means that bulls and bears are fighting it out but neither side has a clear advantage… yet. And that means that the pair is just as likely to stage an upside breakout as a downside breakout.
That also means that it would be prudent for y’all to prepare for both scenarios.
Anyhow, just keep in mind that a topside breakout needs to clear 0.7480 in order to confirm the breakout. Otherwise, the risk remains high that the breakout may fail and end up being a fakeout.
A downside breakout, meanwhile, needs to break lower past 0.7360, ideally on strong bearish momentum.
Bulls have recently been trying to push AUD/JPY ever higher. However, bears have set up a defensive line and entrenched themselves at 83.60.
And so far, them bears have been successful in repelling the bulls’ upward push. In the process, an ascending triangle pattern has formed for us to play with.
As the name implies, an ascending triangle is a bullish forex chart pattern. Our main directional bias is therefore to the upside. Basically, we’re lookin’ to go long if (or when) the pair clears resistance at 83.60, ideally on strong bullish momentum.
Our technical indicators also agree with the upside bias since them moving averages are still in uptrend mode. Stochastic, meanwhile, will soon reach oversold territory, which may entice bulls to charge in.
Despite our bullish bias, just keep in mind that there’s always a chance that the pair may break to the downside instead. Y’all may therefore wanna prepare for such a scenario as well, especially if the pair moves lower past the 83.00 major psychological level.
In any case, y’all just remember to practice proper risk management as always, a’ight?