I’m serving up another batch of chart patterns in today’s intraday charts update. I’m mixing it up a bit, though, since I’ve got a triangle on EUR/JPY and a channel on GBP/USD. Check ’em!
EUR/JPY’s recent price action appears to be tapering into a point. And if we connect the most recent peaks and troughs, we can see that a symmetrical triangle appears to have formed.
A symmetrical triangle means that the pair is just as likely to stage an upside breakout as a downside breakout. We therefore don’t really have a strong directional bias on the pair. In fact, it would be a wise move to prepare for both topside and downside scenarios.
As for the price levels to watch, a move higher past 130.10 would validate the topside breakout. Meanwhile, a move lower past 127.60 would confirm a downside breakout and signal that bears are winning out.
Whichever scenario plays out, y’all just make sure to practice proper risk management as always, a’ight?
If trading breakouts ain’t your thing, or if you’re looking for some trend plays, then check out that there descending channel on GBP/USD’s 1-hour chart.
As y’all can see, the pair is currently hesitating at the area of interest at 1.2870, which is just above the mid-channel area. There’s therefore a chance that the pair may move back down soon.
However, going short at or around the mid-channel area is a bit risky since there’s also a chance that the pair may move higher to test the channel’s resistance which should be at or just below 1.2960. So just keep that in mind.
And as always, do keep in mind that there’s always a chance that the bulls may overpower the bears. And if that results in a topside channel breakout, then a move higher past 1.3040 would validate the break. Y’all may wanna think about bailing yo shorts or even switching to a more bullish bias if that happens.