Word up, fam! We’ll be taking a stroll down memory lane in today’s intraday charts update ‘coz we’ll be checking up on our old setups on EUR/CHF and CHF/JPY. Of course, we’d be lookin’ for fresh setups as well.
Back then, the pair was bouncing off the channel’s resistance at 1.1320 and we were lookin’ for a chance to go long. And, well, the pair did continue moving higher, so give yo self a pat on the back if you were able to ride that.
The pair actually failed to reach the channel’s resistance. But since the channel is still mostly intact, today’s play is to look for opportunities to go long again. And presently, the pair is testing the channel’s support, which is just above the area of interest at 1.1420.
Looking at our technical indicators, we can see that them moving averages are still in uptrend mode. The 200 SMA appears to be acting as dynamic support. Stochastic, meanwhile, is close to oversold territory. There’s therefore a good chance that support may hold.
Of course, there’s always a risk for a downside channel breakout, so just be ready to bail yo longs if the pair moves lower past 1.1380.
We found that there descending channel on CHF/JPY’s 1-hour chart way back on October 10. And back then, the pair was testing the channel’s resistance at the 114.20 and looked set for a downside move.
Well, check that out, dawg! That’s right! The 114.20 level did hold as resistance and the pair moved lower for over 150 pips. And if you were able to ride that, then congratulations on bagging some pips.
Anyhow, the pair pulled back and is now testing the channel’s resistance, so we’re waiting for another opportunity to go short again. The pair could temporarily move outside of the channel, though, since the closest area of interest is at 113.60.
As always, just know that there’s a risk for an upside channel break. And if that happens, then y’all may wanna bail yo shorts, especially if the pair clears 114.20 on strong bullish momentum.
At any rate, y’all just make sure to practice proper risk management as always, a’ight?