Sup, dawg! I’ve got a couple of channel patterns on EUR/CHF and AUD/NZD in today’s intraday charts update that the trend playas out there may wanna check out.
EUR/CHF’s price action has been tilting to the downside recently while apparently trapped inside that there descending channel.
And as most of you probably know by now, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
And as luck would have it, the pair is currently testing the channel’s resistance at 1.1350. Moreover, stochastic is already signaling overbought conditions and all that. Y’all may therefore wanna start lookin’ for opportunities to go short on the pair.
However, do note that them moving averages just recently crossed-over into uptrend mode. There’s therefore a higher-than-average chance for a potential upside channel breakout scenario.
And in the event that a topside breakout does occur, then clearing 1.1380 on strong bullish momentum would validate the break.
AUD/NZD appears to be trading sideways. However, if we connect the most recent peaks and troughs, we can see that the pair has actually been tilting slightly to the downside, forming that there descending channel.
And presently, the pair just bounced off the channel’s support and is making its way back up. The pair still has some ways to go until it reaches the channel’s resistance at 1.0670, though. Even so, y’all may wanna think about putting this pair on yo watch list.
As for the invalidation level, clearing 1.0700 after a topside channel breakout would invalidate the channel. And if that happens, then y’all may wanna think about switching to a more bullish bias on the pair.
Anyhow, y’all just make sure to practice proper risk management as always, a’ight?