I’m serving up another batch of channels in today’s intraday charts update. And this time, I got my eyes on the euro, with EUR/NZD and EUR/AUD in focus.
EUR/NZD has been steadily trending lower for some time now, forming that there descending channel in the process.
And as y’all can see, the pair appears to be making its way up towards the channel’s resistance at 1.6750. An opportunity to go short on the pair may therefore present itself sooner or later.
And while a topside breakout scenario seems unlikely at the moment, just keep in mind that there’s always a risk that such a scenario may play out. And a move higher past 1.6830 would be an early sign that bulls are taking control.
The pair would still need to clear 1.6950 in order to validate a topside breakout, though. But if that does happen, then that likely means that bulls are gunning for 1.7070 next.
A descending channel has also formed on EUR/AUD’s 1-hour chart. This one’s a bit different, however, since the pair is already testing the channel’s resistance area at 1.5680.
There’s a risk that the pair may temporarily stage a topside channel breakout, but everything’s still chill as long as resistance at 1.5740 holds.
But if 1.5740 give way to buying pressure, and the pair then takes out 1.5840, then y’all may wanna think about bailing yo shorts (or even switching to a more bullish bias) since a move higher past 1.5840 would be a sign that bulls are winning out.
In any case, y’all just make sure to practice proper risk management as always, a’ight?