Yo! I’m kickstarting this week’s intraday charts update with a chart pattern + euro double special. And I’ve got a rectangle on EUR/GBP and a potential double top on EUR/NZD on the menu.
And if you’re lookin’ to trade the range, then heads up because the pair is currently testing the rectangle’s support area.
However, do note that stochastic is already pointing back down without really reaching overbought territory. Also, them moving averages are still in downtrend mode. There’s therefore a higher-than-average chance for a downside rectangle breakout. And a strong break lower past 0.8870 would be confirmation of that.
But just in case support at 0.8890 holds, then bulls will likely be gunning for the rectangle’s resistance at 0.8930. And if bullish momentum is strong enough, then them bulls may even attempt a topside rectangle break, and clearing the 0.8950 minor psychological level is a good sign that bulls are in control.
Reversal alert! As y’all can see, EUR/NZD has been trending higher for some time, but a small double top pattern is beginning to form on EUR/NZD’s 1-hour chart.
The pair needs to smash lower past the pattern’s neckline at 1.7710 in order to validate a the pattern. Y’all may therefore wanna keep a close eye for opportunities to short if you’re bearish, or for warning signs to abandon ship if you’re bullish.
And in the event that the pattern is validated, then it’s very likely that them bears will be gunning for the 1.7600 major psychological level.
However, do keep in mind that there’s always a chance that the pair may break to the topside instead. After all, them moving averages are still indicating a healthy uptrend.
At any rate, y’all just make sure to practice proper risk management as always, a’ight?