If trading breakouts is your thing, then you may wanna check out today’s intraday charts update ‘coz I’m serving up a couple of triangles on AUD/CAD and CAD/CHF.
AUD/CAD has been trading sideways recently while apparently tapering into a point. And in the process, a symmetrical triangle pattern has apparently formed.
As y’all probably know by now, a symmetrical triangle may break either to the upside or the downside. As such, we don’t really have a strong directional bias on the pair. But if a breakout does occur, then the resulting rally or selloff may have enough steam for a 150-pip move.
Just remember, though, that an upside breakout move needs to clear 0.9810 before the breakout is confirmed. Otherwise, the risk remains high that the upside triangle breakout may end up being a fakeout.
A downside breakout move, meanwhile, needs to smash lower past 0.9660 in order to validate the downside break.
As y’all can see, a symmetrical triangle has also recently formed on CAD/CHF’s 1-hour forex chart. This triangle is a bit smaller, though.
At any rate, just keep in mind that a symmetrical triangle can break either to the upside or the downside. It would therefore be prudent for y’all to prepare for both an upside breakout as well as a downside breakout scenario.
As for the key areas to watch, an upside breakout needs to clear 0.7590, ideally on strong bullish momentum. Y’all may also wanna keep an eye on the next area of interest at 0.7630, however. A downside breakout move, meanwhile, needs to break lower past 0.7530.
In any case, y’all just make sure to practice proper risk management as always, a’ight?