First up is a classic break-and-retest situation on GBP/CAD’s 4-hour forex chart. Price is still in the middle of a correction and is approaching the 38.2% Fibonacci retracement level at the 1.6200 major psychological mark. If this area is enough to keep gains in check, the pair could make its way back to the swing low or even lower. 1.6700 near the 50% Fib. If a higher pullback is in order, GBP/CAD could test the broken resistance at The 100 SMA is below the 200 SMA anyway so the selloff is likely to resume at some point.
Next is this potential countertrend setup on EUR/CAD’s 4-hour chart. The pair has been trending higher and is currently testing the resistance at the middle of its ascending channel. Price seems to have enough upside momentum for a test of the channel resistance near the 1.4900 handle, which could force it to make a turnaround back towars support around 1.4500. The 100 SMA is below the 200 SMA while stochastic is hovering around the overbought zone, which suggests that sellers could take the upper hand soon.
Last but certainly not least is this potential short-term breakout play on CAD/JPY. The pair has been stuck inside a descending triangle formation on its 1-hour time frame and is testing support while stochastic is indicating oversold conditions. A bounce back to the triangle resistance could be in the cards, but a breakout is bound to happen as price is already approaching the peak of the pattern. Whichever way this goes, the pair could move by an additional 150 pips or the same height as the chart formation.
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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.