If you’re looking for some chart patterns on the Loonie, then I’ve got your fix ‘coz I’m serving up a channel on AUD/CAD and a triangle on EUR/CAD in today intraday charts update.
If you’re a breakout chartist, then you may like that there setup on EUR/CAD.
As y’all can see the pair has been trading sideways while tapering into a point. And in the process, a fresh symmetrical triangle pattern has emerged.
A symmetrical triangle pattern means that a topside breakout is just as likely to occur as a downside breakout. It would therefore be prudent for y’all to prepare for both scenarios.
Do note, however, that an upside breakout needs to clear both 1.5020 and 1.5110 before y’all can chillax. Otherwise, the breakout may end up being a nasty fakeout.
A downside breakout, meanwhile, needs to smash lower past 1.4850 and 1.4780, ideally on strong bearish momentum.
In either case, the resulting breakout move will likely have enough momentum for a whopping 330-pip move, based on the height of the forex chart pattern.
The Kiwi has been trending higher for several days now. And if connect the most recent peaks and troughs, we can see that the pair has been moving higher while inside that there ascending channel.
And as I always say, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is at or close to the channel’s support area.
Unfortunately, the pair is already making its way up. However, y’all may still wanna put this pair on yo watch list since there’s a chance that the pair may pull back to test the channel’s support at 0.9560. After, all the pair appears to be hesitating at the mid-channel area and stochastic is already pointing back down.
As always, however, the risk for a downside channel breakout is always there. So, just know that a break lower past 0.9520 is an early sign that bears are winning out.
And if the pair moves even lower and takes out 0.9480, then y’all may wanna bail yo longs, if you still have ’em. You may even wanna switch to a bearish bias at that point.
Anyhow, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!