Sup, dawg! If you’re a breakout chartist, then you may wanna check out today’s intraday charts update ‘coz I found a couple of fresh triangles on CAD/CHF and CAD/JPY.
CAD/CHF has been consolidating for some time now. However, price action appears to be tightening to a point, forming that there symmetrical triangle in the process.
As y’all should know by know, a symmetrical triangle pattern means that bulls and bears are fighting it out. However, neither side has a winning edge, which means that the pair is just as likely to break to the upside as it is to the downside.
We therefore don’t really have a strong directional bias on the pair. And it would even be prudent for y’all to prepare for both upside and a downside breakout scenarios.
Just note that a downside breakout needs to smash lower past 0.7550 before the breakout is validated, although y’all may as well wait until the pair also moves lower past the 0.7500 major psychological level before chillaxing. But if that scenario does play out, then bulls will likely be shooting for 0.7400 next.
As for a topside breakout, the pair needs to clear the area of interest at 0.7720. And the likely near-term destination would be 0.7820.
CAD/JPY has been trading sideways for some time now. But if we focus on the most recent price action, we can see that the pair appears to be tapering into a point. But at the same time, bulls appear to have entrenched themselves at 85.70, forming a fresh descending triangle in the process.
As the name implies, a descending triangle is a bearish chart pattern. We’re therefore mainly bearish on the pair. And we’re waiting for a clear downside break past 85.70, with 83.90 being the most likely short-term destination.
And looking at our technical indicators, we can see that them moving averages are still in downtrend mode. Stochastic, meanwhile, is already signaling overbought conditions. Our technical indicators therefore support our bearish bias.
However, there is always a risk that the pair may break to the upside instead. It would therefore be wise to prepare for such a scenario as well, especially if the pair signals that bulls are in control by moving higher past 87.40. And if bullish momentum is strong enough, then that likely means that bulls are gunning for 89.20 next.
Whichever scenario plays out, just make sure y’all remember to practice proper risk management as always, a’ight?