First up, let’s kick things off with a look at Caddy! I’m talking about CAD/JPY playa! Checkin’ out that daily chart, we can see that the pair has been chillin’ in a channel for quite some time now. With the pair right smack in the middle of the channel, where could it be rollin’ to next? Looking at Stochastic, it seems that downward momentum is still strong, so don’t be surprised if we see the pair drop to the bottom of the channel around 82.50.
Uh oh, what do we have here… It looks like USD/CHF just broke out strongly out of the trend channel it has been trading in for the last two months and made new all-time lows! Does this mean we will see more weakness out of the pair? That’s what’s price is telling us, so we could see the bears continue to pressure the pair lower, possibly towards the .9100 handle. Now, in the event that we see a retracement, look for bottom of the channel to provide resistance.
Range traders will love this! As you can see, NZD/USD had decided to just dance around in a tight 80-pip range after staging a major drop a few days ago. If you’re part of the bear camp, look to buy at the top of the range, somewhere around the .7500 region. On the other hand, if you’re bullish on the pair, .7435 seems to be a good level to jump in long!