The chart pattern fiesta ain’t over yet! And in today’s intraday charts update, I’m serving up a couple more, with EUR/CHF and EUR/NZD in focus.
EUR/CHF’s price action has been tilting to the upside lately. And as you can see above, an ascending channel appears to have formed.
The pair is currently testing the channel’s resistance at 1.1380. And if resistance holds, then the pair will likely be making its way down towards the channel’s support, which should be somewhere around the area of interest at 1.1260.
However, it’s also worth noting that a small double top pattern appears to be forming. Going short close to an ascending channel’s resistance area is extra risky, though, so only do so if you’re gangsta enough.
But if you’re gangsta enough, then a move lower past the double top’s neckline at 1.1340 would validate the pattern. There’s an area of interest close by at 1.1310, though, so y’all may wanna wait until the pair also clears that before chillaxing.
And as always, do be reminded that that there’s always a chance that the channel may be invalidated, so watch out if the pair keeps moving lower past 1.1190.
EUR/NZD appears to be consolidating. And if we connect the most recent peaks and troughs, we can see that a fresh symmetrical triangle has formed on its 1-hour chart.
As y’all should know by now, a symmetrical triangle is just as likely to break to the upside as the downside. We therefore don’t have a strong directional bias on the pair.
But if a topside breakout scenario plays out, then a move higher past 1.7710 would be an early sign that bulls are winning out. The pair would still need to clear 1.7820 in order to validate the breakout, though.
A downside breakout, meanwhile, would need to smash lower past 1.7560 and then take out 1.7480 as well in order to confirm the breakout move. Otherwise, the risk remains high that the breakout may fail and end up being a fakeout.
Whichever scenario plays out, y’all just make sure to practice proper risk management as always, a’ight?