Word up, peeps! If you’re lookin’ for short-term trend plays, then today’s intraday charts update is just for you ‘coz I’m serving up a couple of channels on EUR/CAD and GBP/USD.
EUR/CAD has been trending higher recently, forming that there ascending channel on its 1-hour chart.
And as y’all can see, the pair is currently testing the channel’s support at 1.5080. Y’all may therefore wanna start lookin’ for opportunities to go long on the pair.
Looking at our technical indicators, we can see that them moving averages are now in uptrend mode. Moreover, the 100 SMA appears to be acting as dynamic support. Stochastic, meanwhile, may soon be entering oversold territory. Our technical indicators therefore signal a higher a probability of further moves to the upside.
However, do note that sellers appear to have entrenched themselves at the area of interest at 1.5180. So if support does hold, and if the pair does move higher, y’all may still wanna keep a close eye on the pair until it clears 1.5180.
That also means that there’s a higher-than-average chance for a downside channel breakout. So just be ready to bail yo longs if the pair smashes lower past 1.5030 on strong bearish momentum.
There’s also a fresh ascending channel on GBP/USD’s 1-hour chart. It’s so fresh that the channel ain’t actually formed yet since the pair has yet to retest the channel’s resistance area.
And presently, the pair is moving up to do just that. Y’all may therefore wanna decide quickly if it’s still worth it to go long on the pair.
But before you do, just take into consideration that the pair is currently at the area of interest at 1.2930, which has acted as resistance recently. Moreover, stochastic is already signaling overbought conditions and all that.
There’s therefore a chance that the pair may pull back a bit towards the would-be channel’s support at 1.2860. And that would be a relatively safer play.
At any rate, y’all just make sure to practice proper risk management as always, a’ight?
Also, do take note that if the pull back is deeper and the pair moves lower past 1.2800, then the would-be channel is invalidated and y’all may even wanna think about switching to a more bearish bias on the pair.