Wassup, peeps! If you’re lookin’ for more short-term triangles to play with, then I’ve got your fix ‘coz I found a couple more on NZD/CHF and GBP/AUD.
First up is that there fresh symmetrical triangle on NZD/CHF’s 1-hour chart.
As y’all probably know by now, a symmetrical triangle means that bulls and bears are fighting it out, but neither side has an advantage… for now. And that means that the pair is just as likely to break to the upside as the downside. It would therefore be prudent for y’all to prepare for both scenarios.
Just note that an upside breakout needs to clear 0.6810. A downside breakout, meanwhile, has to break lower past 0.6720. Although there’s also an area of interest nearby at 0.6660, so y’all may wanna wait until the pair clears that as well before chillaxing.
GBP/AUD’s price action has also been tapering into a point, so much so that another symmetrical triangle appears to have formed.
Looking at our technical indicators, however, it looks like a downside breakout seems more likely at the moment. After all, them moving averages are in downtrend mode. Also, stochastic is already signaling overbought conditions and all that.
Even so, it would still be prudent for y’all to prepare for an upside breakout scenario as well.
Anyhow, a topside breakout needs to clear both areas of interest at 1.7870 and 1.7940 in order to validate the breakout move. A downside breakout, meanwhile, needs to smash lower past 1.7570 before y’all can kick back and chillax for a bit.
At any rate, y’all just make sure to practice proper risk management as always, a’ight? Peace out!