The Greenback might bust a move against the yen and the Loonie with these longer-term resistance tests on my radar. Check it!
First up is this neat longer-term descending channel visible on the daily time frame of USD/JPY. The pair already made a bounce off the top but looks prime for another test of resistance.
Stochastic is heading higher so price could follow suit while buyers remain in control. Once it turns back down from overbought territory, however, sellers could jump back in and allow the 61.8% Fib to keep gains in check.
The 100 SMA is below the longer-term 200 SMA anyway, so bearish momentum is still in play. Watch this one closely, brothas!
If you’re counting on a big move on the oil-related Loonie leading up to the OPEC meeting next week, you should keep an eye out for this USD/CAD rising wedge.
Price is bouncing off the resistance and might be due for a test of the bottom, although the floor might still hold since it’s close to the dynamic support at the moving averages.
In addition, the 100 SMA is safely above the 200 SMA to confirm that the path of least resistance is to the upside. Stochastic is moving south, though, but is approaching the oversold region to reflect seller exhaustion. A breakout in either direction could spur a rally or a selloff that’s the same height as the chart pattern, which spans 1.2500 to 1.3050.