Yo! I’ve got a channel on EUR/AUD’s 1-hour chart that trend riders may like. Breakout chartists, meanwhile, may wanna check out the triangle I found on NZD/CHF’s 1-hour chart.
After a strong down move, NZD/CHF finally found support at the 0.6520 handle and began trading sideways. However, if we connect the most recent peaks, we can see that the pair has been making lower highs, giving us a descending triangle in the process.
A descending triangle is a bearish forex chart pattern, so our main directional bias is to the downside.
And if we take a look at our technical indicators, we can see that them moving averages are indicating a healthy downtrend, while stochastic is already signaling overbought conditions and all that. They therefore increase the odds for a potential downside move.
However, do note that there’s always a chance that price may break to the upside instead, so prepare for such a scenario as well, especially if the pair clears 0.6580.
EUR/AUD has recently been moving higher while apparently trapped inside an ascending channel. And lookin’ at the chart above, we can see that the pair is currently testing the channel’s support area at 1.5650.
Y’all may therefore wanna start lookin’ for opportunities to go long on the pair.And all the more so, given that stochastic is already indicating oversold conditions. Moreover, them moving averages just crossed-over into uptrend mode.
Do note, however, that the pair’s latest upswing failed to reach the channel’s resistance area. And that implies that bulls may be running out of steam. So if any y’all do find a chance to go long, then y’all may wanna keep a close eye on how the pair reacts to 1.5710 since them bears appear to have entrenched themselves there.
Moreover, the possibility that bulls may be running out of steam also means that there’s a higher-than-average chance for a downside channel breakout. And if that scenario plays out and the pair smashes lower past 1.5620, then y’all may wanna think about bailing yo longs or even switching to a more bearish bias.
Whichever scenario plays out, just make sure y’all remember to practice proper risk management, a’ight?