If trading breakouts is your thing, then you may wanna check out today’s intraday charts update ‘coz I found a couple of triangles on EUR/USD and USD/JPY.
Looks like price action on EUR/USD is consolidating to a point since a symmetrical triangle has recently emerged.
And as most of y’all probably already know, a symmetrical triangle means that bulls and bears are roughly balanced, so the pair could break in either direction. It would therefore be prudent to prepare for both topside and downside breakout scenarios.
As for key price levels to watch before y’all can chillax after a breakout does occur, 1.1500 is the price area to watch for an upside breakout, although a move higher past 1.1430 would be an early sign that bulls are starting to win out.
A move lower past the 1.1300 major psychological level, meanwhile, would signal that bears have the advantage. The pair would still need to smash lower past 1.1220 in order to validate the downside breakout, however.
As y’all can see, a symmetrical triangle has also formed on USD/JPY’s 1-hour chart.
Looking at our technical indicators, we can see that them moving averages are already in uptrend mode. Stochastic, meanwhile, is moving back up after entering oversold territory. An upside breakout therefore seems like a more probable scenario. Just keep in mind that an upside breakout needs to clear the 114.00 major psychological level before the break is deemed valid.
But remember that what we have here is a symmetrical triangle, so a downside breakout scenario should also always be considered. And a move lower past 113.20, ideally on strong bearish momentum, would validate a downside break.
In any case, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!