The chart pattern party ain’t over yet! And in today’s intraday charts update, I’m serving up a double bottom on CAD/CHF and a channel on EUR/CAD.
CAD/CHF has been trending lower recently. However, the pair appears to have found support at 0.7470.
And buying interest at 0.7470 appears strong since the pair tried to break lower again recently and but that price level held. And in the process, a double bottom pattern appears to be forming. There’s therefore a good chance that the pair may stage a reversal and climb higher.
If the pattern is validated by a move higher past 0.7560, then that likely means that bulls are gunning for the 0.7600 major psychological level and then the minor psychological level at 0.7650.
Looking at our technical indicators, however, there also seems to be a chance for further downside moves since stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, are still in downtrend mode.
Y’all may therefore wanna prepare for a trend continuation scenario as well, especially if the pair smashes lower past 0.7470 on strong bearish momentum. And if such a bearish scenario plays out, then the 0.7400 major psychological level would probably be the near-term destination.
If you’re more of a trend rider, then check out that there descending channel on EUR/CAD’s 1-hour chart.
Unfortunately, the pair has already bounced off the channel’s support. However, the pair already appears to be hesitating at the mid-channel area at 1.5110.
There’s therefore a chance that the pair may move back down to test the channel’s support, which should be at or just above the area of interest at 1.5020.
Of course, there’s always a risk that bearish pressure may be so strong that the pair stages a downside breakout. And if the pair moves lower past 1.4960 on strong bearish momentum, them y’all may wanna think about bailing yo longs (if any).
In any case, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!