Word up, dawg! I’m kickstarting this week’s intraday charts update with a couple of chart patterns on the Kiwi, with NZD/USD and NZD/CAD in focus.
If you’re a trend rider, then heads up ‘coz a fresh descending channel pattern has formed on NZD/USD’s 1-hour chart.
And looking at that there chart, we can see that the pair is pushing off the channel’s resistance area at 0.6820. Y’all may therefore wanna decide quickly if it’s still worth it to start lookin’ for opportunities to go short.
But before you do, just note that stochastic is already signaling oversold conditions while them moving averages just recently crossed-over into uptrend mode.
In other words, our technical indicators are saying that there’s a higher-than-average chance for an upside channel breakout at the moment. Y’all may therefore wanna prepare for such a scenario as well. As for the confirmation level, a move higher past 0.6860 would validate the topside breakout and signal that bulls are in control.
NZD/CAD has been trading sideways recently. However, if we connect the most recent peaks and troughs, we can see that NZD/CAD’s price action appears to be tapering into a point. And in the process, a fresh symmetrical triangle pattern has formed for us to play with.
As y’all should know by now, a symmetrical triangle is just as likely to break to the upside as 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 110-pip move, based on the height of the chart pattern.
Just note that a topside breakout needs to clear 0.8990 before the breakout is validated. A downside breakout, meanwhile, needs to smash lower past 0.8880. The area of interest at 0.9100 is close by, though, so y’all may wanna wait until the pair moves lower past that as well before chillaxing.
In any case, y’all just make sure to practice proper risk management as always, a’ight?