If any y’all are trend riders, then huddle up ‘coz I’m serving up a USD + channel pattern double special in today’s intraday charts update, with focus on NZD/USD and USD/JPY.
NZD/USD has been trending higher while bouncing up and down inside that there ascending channel. And presently, the pair appears to be bouncing off the channel’s support at 0.6580.
And as I say from time to time, one of the more conservative ways to play an ascending channel is to look for opportunities to go long on the pair when the pair is at or close to the channel’s support area. As such, y’all may therefore wanna start doing just that.
And if we look at our technical indicators, we can see that they also support further upside moves since them moving averages are indicating a healthy uptrend. Stochastic, meanwhile, is already signaling oversold conditions and all that.
Do note, however, that there’s always slim chance that sellers may return and force the pair to stage a downside channel breakout. And if the pair breaches 0.6530 on strong bearish momentum, then y’all may wanna start thinking about bailing yo longs.
USD/JPY is currently milling about just below that there descending channel’s resistance at 112.40. And since them moving averages are still in downtrend mode, y’all may therefore wanna start lookin’ for opportunities to go short on the pair.
However, do note that there’s presently a higher-than-average chance for a topside channel breakout. After all, stochastic is rather close to oversold territory, which may entice bulls to attack.
And in the event that bulls do attack, then y’all may wanna think about switching to a more bullish bias if the pair clears the area on interest at 112.90 on strong bullish momentum.
Whichever scenario plays out, y’all just remember to practice proper risk management as always, a’ight?