Yo! I’ve got a couple of chart patterns on today’s intraday charts menu. To be more specific, I’m serving up a channel on NZD/USD and a triangle on CAD/CHF.
If riding trends is your thing, then check out that there ascending channel on NZD/USD’s 1-hour chart.
As y’all can see, the pair is currently testing the channel’s resistance area, but stochastic is moving back down again after visiting the overbought area. There’s therefore a chance that the pair may also move back down to test the channel’s support at 0.6640.
And if that happens, then that means that we may soon find an opportunity to go long on pair. Y’all may therefore wanna put this pair on yo watchlist.
As always, there’s a risk that the pair may continue moving lower past 0.6640 and invalidate the pattern. And if the pair keeps moving even lower past 0.6610, then that’s a sign that bears are in control. And if that happens, then y’all may wanna think about bailing yo longs or even switching to a more bearish bias.
If you’re more of a breakout chartist, then heads up ‘coz a symmetrical triangle is forming on CAD/CHF’s 1-hour chart.
A symmetrical triangle means that bulls and bears are playing tug-o-war, but neither side has has a clear advantage… for now. And that means that the pair could break out in either direction sooner or later. We therefore don’t really have a strong directional bias on the pair.
At any rate, just note that an upside breakout needs to clear 0.7640 and 0.7680 in order to validate the breakout move. A downside breakout, meanwhile, needs to smash lower past 0.7540, ideally on strong bearish momentum.
If the pair fails to take out those areas of interest, then the risk remains high that the breakout move may end up being a fakeout.
In any case, y’all just make to practice proper risk management, a’ight?