It’s a fresh trading week, fam! And we’re kickstarting this week’s intraday charts update with a triangle on AUD/USD and a channel on EUR/AUD.
AUD/USD has been trading sideways recently. However the pair’s price action appears to be tapering. And if we connect the most recent peaks and troughs, we can see that a symmetrical-ish triangle appears to be forming.
Looking at our technical indicators, we can see that them moving averages just recently crossed-over into downtrend mode while stochastic is already moving lower but has yet to reach oversold territory. They therefore favor further downside moves.
However, it would still be prudent to prepare for a topside breakout scenario as well. After all, a symmetrical triangle is just as likely to break to the upside as to the downside.
As for the key price levels to keep an eye on, a downside breakout should smash lower past 0.7200 and then 0.7170 before y’all can chillax. A topside breakout, meanwhile, needs to clear both 0.7300 and 0.7330.
As y’all can see, EUR/AUD is currently bouncing off that ascending channel’s support area, which is just below the area of interest at 1.5640. Y’all better decide quick if it’s still worth it jump in with a long.
But before you do, take into consideration that stochastic would soon be entering overbought territory. And since the pair is already testing the area of interest at 1.5680, there’s a real risk that 1.5680 may act as resistance and then be used as a diving board for a downside channel breakout.
The moving averages are still in uptrend mode, though, so our directional bias is still mainly to the upside. But if a downside channel breakout does occur, then moving lower past 1.5580 would confirm the downside break.
In any case, y’all just make sure to practice proper risk management as always, a’ight?