We’re havin’ a Loonie special today, fellas! See, USD/CAD just hit a long-term channel support while GBP/CAD is sporting a double top. Get ’em while they’re hot!
I spy with my cool eyes a double top situation on GBP/CAD!
Before you short the pair like there’s no tomorrow, you should note that the 1.6950 “neckline” hasn’t been broken yet, and that the SMA crossover and retests are making it hard for the bears to gain momentum at the moment.
If the pair does break below the neckline, then look for a move back to the previous lows near 1.6600. If the pound bounces from the current support, however, then we might see a pop back up to the 1.7100 falling trend line resistance.
Watch this one closely, folks!
USD/CAD is revisiting the 1.2950 levels, which is right smack at a long-term channel AND the 200 SMA support on the daily time frame.
Think the Greenback is in for more gains against the Loonie? A long trade at current levels would give you a good reward-to-risk ratio especially if you place your stops just below the channel.
Just make sure you don’t tighten your stops too much, aight? Stochastic hasn’t hit oversold status just yet, so we still might see some bears attack before the bulls gain momentum.
Of course, USD/CAD might not extend its uptrend at all and see a downside breakout in the next couple of candlesticks. Just throwin’ it out there.