Word up, peeps! It’s a fresh week and I’m serving up a couple of fresh chart patterns in today’s intraday charts update, with a channel in EUR/NZD and a triangle on GBP/NZD on the menu.
EUR/NZD’s recent price action has a noticeable downward tilt. And if we connect the most recent peaks and troughs, we can see that a fresh descending channel has formed.
And presently, the pair is making its way up towards the channel’s resistance, which should be somewhere between the areas of interest at 1.7710 and 17660.
Y’all may therefore wanna put this pair on yo watchlist, especially if you’re bearish on the pair.
As always, do keep in mind that there’s a risk that the pattern may get invalidated. And clearing 1.7710 on strong bullish momentum would be an early sign that bulls are winning out. However, the pair would also need to clear 1.7820 in order to validate a topside breakout move.
In any case, y’all just make sure to practice proper risk management as always, a’ight?
As y’all can see, a fresh symmetrical triangle has recently formed on GBP/NZD’s 1-hour chart.
A symmetrical triangle pattern normally means that bulls and bears are locked in a game of tug-o-war, but neither side is winning out, so a topside breakout is just as likely to happen as a downside breakout.
In this case, however, a downside breakout move seems like a more likely scenario since the pair did try a topside breakout, but it was pushed back inside.
And if we look at our technical indicators, we can see that stochastic is moving back down again after visiting overbought territory. Them moving averages, meanwhile, are in downtrend mode. There are therefore more technical arguments for a potential downside breakout.
And if a downside breakout does occur, then the pair should ideally smash lower past 1.9560 on strong bearish momentum.
Of course, a topside breakout could still happen. The pair would need to clear 1.9920, 1.9980, and 2.0030 in order to validate a topside breakout, though.