Wow, that falling trend line on USDCAD’s daily chart is definitely staying strong! Now that the pair is sitting right on the trend line and the stochastics is in the overbought region, USDCAD could head back down once again. If it does, it could find support right around the 1.0150 level. Wait a minute… That looks like a descending triangle ready to form! Ooh, we could be in for some breakouts soon. Watch out if a candle breaks significantly past the 1.0500 handle since it could signal that the pair’s downtrend is over.
Will today be a doomsday Tuesday for the yen cross? The descending triangle in the chart seems to say so. The pair has already tested the support on the 76.00 handle twice, but green candles keep poppin’ up once in a while. Will the force of the triangle drag the pair down? It might be in for a selling frenzy if a candle closes below the significant 76.00 support.
Check out these sexy Fib lines, homies! After reversing on the 50% Fib near the .7100 handle, it looks like the pair is now testing the 38.2% Fib near .7060. Will the mighty Fibonacci provide resistance and push the pair back down, or will the pair break the pattern and rise above the Fibs? Unfortunately, mum’s the word for my friend stochastics as it is currently sitting on the middle ground without a clear directional bias. Better keep a close eye on this one, then!