Yo! I’m serving up another batch of channels in today’s intraday charts update. And this time, I found a couple of channels on CHF/JPY and NZD/USD. Check ’em out!
As y’all can see, there’s apparently a rather huge ascending channel on CHF/JPY’s 1-hour chart.
And as y’all can also see, the pair just recently bounced off the channel’s support at the 113.00 major psychological level. Y’all may therefore wanna decide quickly if it’s still worth it to go long on the pair.
But before y’all decide to jump in with a long, do consider that stochastic is already signaling overbought conditions. And that means that there’s a chance that the pair may move back down and allow y’all to go long at a better price level.
However, that also means that there’s currently a higher-than-average chance for a downside channel breakout. And all the more so, given that them moving averages just recently crossed-over into downtrend mode.
And if a downside breakout does happen, then smashing lower past 112.50 would confirm the downside break.
But even if support forms or the pair continues to move higher, just make sure to keep a close eye on 113.60 since selling interest appears strong there.
NZD/USD has been encountering buyers for some time now. And in the process, a fresh ascending channel has formed for us to play with.
And presently, the pair is milling about at the channel’s support at 0.6920, which appears to be holding.
And looking at our technical indicators, we can see that them moving averages are still indicating a healthy uptrend, while stochastic is moving back up after visiting the oversold area. They therefore appear to support further moves to the upside.
Of course, there’s always a risk that the channel may fail to hold up, leading to a downside channel breakout. So just be ready to bail yo longs and/or think about switching to a more bearish bias if the pair moves lower past 0.6870 on strong bearish momentum.
In any case, y’all just make sure to practice proper risk management as always, a’ight?