Today’s intraday charts update is mainly for the trend playas out there since I’m serving up a couple of channels on EUR/NZD and NZD/JPY.
EUR/NZD has been drifting steadily lower while trapped inside that there descending channel.
And as y’all probably know, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
Well, the pair is currently milling about just below the channel’s resistance area at 1.7520. Y’all may therefore wanna start looking for a chance to go short on the pair.
And all the more so, given that them moving averages are still in downtrend mode and the 100 SMA even appears to be acting as dynamic resistance. Stochastic is also close to the overbought area.
And while an upside scenario seems unlikely at the moment, the risk is always there, so just be ready to bail yo shorts or switch to a more bullish bias if the pair clears 1.7650 on strong bullish momentum.
A channel has also recently formed on NZD/JPY’s 1-hour chart. This one’s an ascending channel, though, so we’re mainly bullish on the pair.
And as y’all can see, the pair is currently testing the channel’s support, so y’all may wanna start looking for opportunities to go long on the pair.
Do note, however, that the nearest area of interest is at 73.40, which is below the channel’s resistance. There’s therefore a chance that the pair may stage a downside breakout, test 73.40, and then move back inside the channel.
There’s also always a risk that bears may win out, and a strong bearish move past 73.20 would be an early sign that bears are in control.
Such a bearish scenario seems unlikely at the moment, though. After all, our technical indicators show that the uptrend is still intact and stochastic is already signaling oversold conditions to boot.
In any case, just make sure y’all remember to practice proper risk management as always, a’ight?