If you think EUR/CAD is in for more rallies, you gotta take a look at this potential channel play on the pair’s 4-hour time frame. With stochastic deep in the oversold region, it seems that euro bulls are itching to push this pair right back up! A bounce could take place once the pair tests the bottom of the rising channel, which is right around the 1.5100 major psychological support level. Better wait for candlestick confirmation if you’re looking to go long.
Don’t look now, but CAD/JPY looks ready to start a new trend soon! On its 4-hour chart, the pair has formed a double bottom pattern, which is a classic reversal signal. It has yet to break above the neckline of the formation before the uptrend is confirmed though so y’all better sit tight. Stochastic is already in the overbought zone, which suggests that the rallies could weaken in a bit, but do wait for a potential upside break above the 94.00 handle if you’re bullish on this one.
If you fancy breakouts, then it might be worth keeping tabs on this parity test for AUD/CAD. On its daily chart, the pair appears to be finding resistance right at the 1.0000 major psychological level with stochastic moving down from the overbought region. Aussie bulls seem to be getting more aggressive as the pair has formed higher lows, indicating an increase in buying pressure. A strong upside break could take the pair back to its former highs near 1.0500 while another rejection at parity could mean at test of .9400 later on.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.