Word up, homie! I’ve got a couple of channel setups on USD/CAD and CAD/CHF in today’s intraday charts update that the trend riders out there may like.
USD/CAD has recently been trending higher while trapped in that there ascending channel.
And as y’all should know by now, one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is testing the channel’s support area.
Well, as it turns out, the pair is doing just that. Y’all therefore better start looking. And all the more so, given that stochastic is already signaling oversold conditions and all that.
Moreover, the channel’s support area happens to sit right smack on the area of interest at the 1.2450 minor psychological level. And the 200 SMA may even act as dynamic support to boot.
There’s always a small chance for a downside channel breakout, though. So y’all may wanna think about bailing yo longs if the pair smashes past 1.2380 after staging a downside channel breakout.
If y’all can still recall, we had a descending triangle pattern on CAD/CHF’s 1-hour chart way back on September 26.
Back then, we were waiting for the pair to smash past 0.7800 so that we can go short while gunning for 0.7720 at the least. And, well, the pair did stage a downside break past 0.7800 but the pair wasn’t able to reach 0.7720.
Anyhow, if take the most recent price action into account, we can see that a fresh descending channel has formed on the pair. In addition, we can also see that the pair is currently hesitating at the mid-channel area, which happens to be the broken support area at 0.7800.
This gives us two scenarios. The first scenario is that the mid-channel area holds and the pair moves lower to 0.7720. The second scenario, meanwhile, is that the pair continues to move higher to the channel’s resistance area, which should be at just below 0.7850 before moving back down to 0.7720.
Of course, there’s also always the possibility that the pair may continue moving higher and stage an upside channel breakout, so get ready to bail or even switch bias if the pair clears 0.7900.
In any case, just make sure to practice proper risk management, a’ight?