Yo! I’m starting this week’s intraday charts update with a euro + chart pattern double special, with EUR/CHF and EUR/USD in focus. How cool is that?
EUR/CHF has been trending ever lower while apparently trapped inside that there descending channel.
And presently, the pair is making its way towards the channel’s resistance area at 1.1620. Y’all may therefore wanna get ready to start lookin’ for opportunities to go short on the pair.
However, the pair already appears to be hesitating at the 1.1600 major psychological level. And if we look at our technical indicators, we can see that stochastic is already pointing back down after visiting overbought territory. The 100 SMA, meanwhile, appears to be acting as dynamic resistance.
In short, there’s a chance that the pair may move back down again without testing the channel’s resistance area. However, the safer way to play is to wait until the pair tests the channel’s resistance. So only start lookin’ for opportunities to go short at 1.1600 if you’re gangsta enough.
In any case, just make sure to also keep in mind that a move higher past 1.1650 means that bulls are likely in charge.
A symmetrical triangle appears to have formed on EUR/USD’s 1-hour chart. Well, “symmetrical-ish” would probably be more accurate since the triangle ain’t really all that symmetrical.
Anyhow, a symmetrical-ish triangle means that bulls and bears are playing a game of tug-o-war. However, neither side is really winning out (for now).
One side will eventually have to give way, though, but the bears are just as likely to win as the bulls. As such, the pair is just as likely to break to the downside as the upside. It would therefore be prudent for y’all to prepare for both scenarios.
Just remember, however, that a topside breakout needs to clear 1.1790. Otherwise, the risk remains high that the breakout attempt may fail and end up being a fakeout.
A downside breakout, meanwhile, needs to break lower past 1.1580, ideally on strong bearish momentum.
Whichever scenario plays out, y’all just make sure to practice proper risk management as always, a’ight?