I’m serving up a Loonie special today, forex folks! This time we’re looking at a short-term trend on USD/CAD and a possible long-term triangle on AUD/CAD. Check ’em while they’re hot!
USD/CAD has found support from the 1.3450 area, and is now heading fast towards the falling trend line resistance that hasn’t been broken since the start of the month.
Stochastic is already in the overbought area, so dollar bears could strike at current levels, which is right around an area of interest from late last week as well as the 100 SMA and the 36.2% Fibonacci retracement level.
Or they could wait a bit more until the pair hits the 1.3600 psychological handle, which lines up with the 200 SMA, 61.8% Fibonacci retracement, AND the falling trend line on the 1-hour time frame. In any case, make sure you stick around to see if and when this baby starts to go back to its downtrend!
I spy with my cool, blue eyes an ascending triangle in the making! AUD/CAD is having trouble breaking below its current levels, which isn’t surprising since it’s near the 100 and 200 SMA as well as a rising trend line support that’s been holding since last year.
Think the Aussie will climb back up to retest its long-term resistance near 1.0330? A long trade at current levels could get you a pretty decent reward-to-risk ratio especially if you place your stops just below the trend line.
Be careful about trading currency crosses like this one, though, as they tend to see volatility like nobody’s business!