We’ll be taking a stroll down memory lane in today’s intraday charts update since we’ll be checking up on our old setups on CAD/CHF and CAD/JPY. Of course, it goes without saying that we’ll be lookin’ for fresh plays as well.
And as y’all can see, the pair chose to break to the downside. Well, the pair did stage a false breakout first before going back down. However, the pair didn’t clear the key area of interest at 89.80, so most of y’all were probably safe. Well, unless y’all were so gangsta that you jumped in at the breakout point.
Getting back on topic, the pair broke to the downside and took out the key areas of interest at 89.00 and 88.70 that I told y’all to keep an eye on. So if you were able to short at either (or both) price levels, then congratulations on bagging some pips. Aww, yeah! We got bank, dawg!
Anyhow, we’re still bearish on the pair. However, the pair appears to have found support already. And since stochastic is pointing back up again, chances are good that the pair will be pulling back. We may therefore get a chance to go short again soon.
And if we use our handy Fibonacci tool, we can see that the 61.8% and 38.2% are the retracement levels to watch since they line up with the key price areas at 88.70 and 89.00.
If the pair does pull back and if the pair does find resistance somewhere between 88.70 and 89.00, then them bears will likely be gunning for 87.80 next. But if the pair continues to move higher past 89.00, then y’all may wanna bail yo shorts.
However, I also told y’all back then that them bears appeared to have entrenched themselves at 0.7860. So y’all may wanna wait until the pair clears 0.7860 before jumping in with longs. Well, it turns out that advice was gold.
I also warned y’all back then that there was a higher-than-average chance for a downside channel breakout. And as it turns out, that’s how price action played out. The pair even took out the key price area at 0.7800, so we’re now bearish on the pair.
Anyhow, the pair appears to be hesitating at 0.7710. And since stochastic has been signaling oversold conditions and all that for a while now, there’s a chance that the pair may retrace soon.
And it looks like all retracement levels are valid pullback areas since the 38.2% retracement level lines up with the area of interest at 0.7770. The 50% and 61.8% retracement levels, meanwhile, sandwich the key price area at 0.7800.
In any case, just make sure to practice proper risk management, a’ight?