Falling trend line, lower highs, stochastics pointing down, 61.8% Fibonacci retracement level holding… Hmm, it looks like we’re getting a lot of signals that the USDCAD will continue to drop! If you’re part of the bear camp, look for possible shorts and ride them down to former lows at 1.0140. Conversely, if you’re bullish on the pair, keep an eye on the 61.8% Fib! A break of this level could take the pair to former highs at 1.0680.
Down, down, down… Well, that seems to be where the EURUSD pair is headed, judging from that falling trend line connecting its lower highs. There’s also a bearish divergence since the stochastics are showing higher highs, hinting that it could keep on dropping. However, the pair looks like it needs to pull up a bit, possibly until that area of interest around the 38.2% Fibonacci retracement level.
How low will the Swissy go? Not low enough yet for the Swissy bears, apparently. It looks like the pair is poised for more losses as a bearish flag has formed on the 1-hour chart. Since the pair is making lower highs on the higher time frames, it seems that the bias would be for a downside break towards resistance-turned-support at 1.0730-1.0750. On the other hand, if it breaks upward, a retest of 1.1000 would be likely.