The pair is currently milling about near that there descending channel’s resistance area. Also, stochastic is already signalling overbought conditions while the moving averages are in downtrend mode, which means that probability is currently skewed towards a downside move, so y’all better start looking for opportunities to go short. There are no guarantees that a down move will materialize, though, so make sure to practice proper risk management, alright?
CAD/CHF has been moving up and down while tapering to a point, and what appears to be a symmetrical triangle has now formed on its 1-hour time frame. A symmetrical triangle means that the bulls and the bears are duking it out but neither side has a clear advantage, so a breakout could occur in either direction. And if a breakout does happen, then the resulting rally or selloff could potentially last for around 300 pips, based on the height of the triangle. The moving averages are currently in downtrend mode, though, while stochastic is pointing down and pushing away from overbought territory, so he path of least resistance appears to be to the downside for now.
One of the more conservative ways to play an ascending channel is to look for buying opportunities near the channel’s support area. And while price is currently near the channel’s support area, conservative forex traders may wanna sit this one out for now since price seems to have difficulty moving past the 0.7190 handle, which is a price with very significant market interest, even on the higher time frames. Stochastic is pointing back up again while the moving averages are indicating an uptrend, but if 0.7190 holds as support, then we may potentially see a downside channel breakout.
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.