Sup, peeps! I’m kickstarting this week’s intraday charts update with a couple of triangles on GBP/CAD and EUR/NZD.
GBP/CAD’s trip to the downside has stalled recently and the pair has been trading somewhat sideways for some time now.
And if we connect the most recent peaks and troughs, we can see that a fresh symmetrical triangle has formed for us to play with.
As y’all should know by know, a symmetrical triangle pattern means that bulls and bears are fighting it out. However, neither side is really winning out, which means that the pair is just as likely to break to the upside as it is to the downside.
As such, we don’t really have a strong directional bias on the pair. And it would even be prudent for y’all to prepare for both upside and a downside breakout scenarios.
Just note that a downside breakout needs to smash lower past 1.6600 before the breakout is validated. If the pair fails to do that, then the risk remains high that the breakout may end up being a fakeout.
As for a topside breakout, the pair needs to clear the area of interest at 1.6800. Although y’all may also wanna keep a close eye on 1.6870 before chillaxing.
Price action on EUR/NZD’s 1-hour chart has been rather messy lately. But if we focus on the most recent price action, we can see that the pair appears to be tapering into a point. At the same time, bulls appear to have entrenched themselves at 1.7220, forming a fresh descending triangle in the process.
As the name implies, a descending triangle is a bearish chart pattern. We’re therefore mainly bearish on the pair. And we’re waiting for a clear downside break past 1.7220, with 1.7120 being the most likely short-term destination.
And looking at our technical indicators, we can see that them moving averages are now in downtrend mode and the 100 SMA even appears to be acting as dynamic resistance.
However, there is always a risk that the pair may break to the upside instead. It would therefore be wise to prepare for such a scenario as well, especially if the pair signals that it may be resuming its uptrend by moving higher past 1.7350 and then 1.7480.
Whichever scenario plays out, just make sure y’all remember to practice proper risk management, a’ight?