Lookin’ for fresh short-term setups on the Loonie? If you are, then I’ve got your fix since I’m serving up a potential channel on CAD/CHF and a triangle on CAD/JPY in today’s intraday charts update.
CAD/CHF has been tilting to the downside lately, so much so that it broke lower past that there rising trend line. Not only that, there’s also a potential descending channel that’s forming up on the pair’s 1-hour chart.
I say “potential” because the pair has to respect the would-be channel’s resistance area at 0.7850 and then move lower to test the would be channel’s support area. Only then can we say that the “potential” channel has become an “actual” descending channel. You get my drift, dawg?
Looking at our technical indicators, they seem to support further moves to the downside since stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, just recently crossed-over into downtrend mode.
Anyhow, if you’re one of them conservative forex traders, then you may wanna sit this one out since trading a channel that hasn’t been validated yet is extra risky. After all, the risk remains high that the pair may move higher instead.
But if you’re gangsta enough to start lookin’ for an opportunity to short here, then just keep in mind that if the pair clears 0.7890, then that’s an early sign that bulls may be in control. And if the pair breaks past 0.7950, then you may wanna bail yo shorts since that’s a clear sign that them bulls are in charge.
If you ain’t got no bias on the Loonie, then you may wanna check out what I have on CAD/JPY’s 1-hour chart.
As y’all can see, CAD/JPY has been trading sideways while tapering into a point, forming that there fresh symmetrical triangle in the process.
A symmetrical triangle may break either to the upside or the downside, so we don’t really have a directional bias. In fact, it may even be prudent to prepare for both an upside scenario and a downside scenario.
Anyhow, if the pair does break to the upside, then y’all may wanna wait until the pair clears 91.60 before chillaxing. After all, if the pair fails to clear that key price area, then the risk is high that the upside breakout may end up being a nasty fakeout.
For a downside breakout, meanwhile, the pair needs to take out both 90.30 and 89.60 before the breakout is validated.
In any case, just make sure to practice proper risk management, a’ight?