Yo! If trading trends is your thing, then check out today’s intraday charts update ‘coz I’ve got a couple of channels on NZD/CHF and GBP/USD.
NZD/CHF has been trending lower for a few days now. And if we connect the most recent peaks and troughs, we can see that the pair has been moving lower while apparently respecting that there descending channel.
And as I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
Well, the pair is currently trading sideways just below the channel’s resistance at 0.6720. Y’all may therefore wanna start looking. And all the more so, given that stochastic is pointing back down again.
If the resistance at 0.6720 does hold, and if the pair does move back down, then bears will likely be gunning for the area of interest at 0.6660.
However, just be reminded that there’s always a risk that the pair may stage topside breakout instead. So just be ready to bail yo shorts if the pair does stage an upside breakout and then takes out the area of interest at 0.6740.
A descending channel has also recently formed on GBP/USD’s 1-hour chart. The pair is at the channel’s support area, though, so there are no relatively safe short-term setups at the moment.
Still, y’all may wanna put the pair on yo watch list since the pair appears to be pulling back from the channel’s support area. And if the pair does pull back, then resistance will likely form somewhere below the area of interest at 1.2960.
If you’re gangsta enough, you can even try going long here and then gunning for 1.2960 or thereabout. However, going long at a descending channel’s support area is extra risky, so do so at your peril.
As with all descending channels, there’s always a slim chance for a topside channel breakout. The pair would need to clear 1.3080 in order to validate a topside breakout, though, but a move higher past 1.3020 would be an early sign that bulls may be taking over.
In any case, y’all just remember to practice proper risk management as always, a’ight?