I’m serving up a potential head-and-shoulders pattern on USD/CAD and a triangle on EUR/GBP in today’s intraday charts update. Get ’em while they’re still fresh!
EUR/GBP’s has been trading sideways. The pair’s price action appears to be tapering into a point, though. 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.
And as most of y’all already know, a symmetrical triangle means that bulls and bears are roughly balanced, so the pair could break in either direction. It would therefore be prudent for y’all to prepare for an upside breakout scenario, as well as a downside breakout scenario.
As for key price levels to watch before y’all can chillax after a breakout does occur, 0.8820 is the price area to watch for an upside breakout. A downside breakout, meanwhile, needs to smash lower past 0.8730, ideally on strong bearish momentum. Otherwise, the risk remains high that the breakout may end up being a fakeout.
Sound the reversal alert, yo! As y’all can see on that there chart, an inverted head-and-shoulders pattern appears to have formed on USD/CAD’s 1-hour chart.
The head is at 1.2780 and the “neckline” is at 1.3060, so a topside breakout will likely have enough momentum for a 280-pip rally. Do note, however, that there’s also an area of interest close by at 1.3080. And that pair should ideally clear that on strong bullish momentum as well.
And as always, however, there’s a chance that the pattern may fail. So if you were so gangsta that you went long before the pair broke past 1.3060 and 1.3080, then y’all may wanna think about bailing yo longs if the pair breaks that there rising trend line.
And if the pair keeps going lower after that and smashes lower past 1.2920, then that likely means that bears are gunning for 1.2780 next.
In any case, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!