First up on today’s Loonie + forex chart pattern double special is that there descending channel on GBP/CAD’s 1-hour forex chart. As y’all now, the most conservative way to play a descending channel is to look for selling opportunities near the top of the channel. But since price is already at the mid-channel area, then that means that this setup is only for the more aggressive forex traders out there. Anyhow, the moving averages are already in downtrend mode, and the 100 SMA even acted as dynamic resistance for the most recent bounce lower. Also, stochastic is pointing down and moving away from overbought territory, so forex traders who are bearish on the pair are probably in control and the pair could potentially go lower to test the channel’s bottom area.
USD/CAD has been trading sideways while trapped between the 1.3930 and 1.3820 handles, which gives us a nice 110-pip trading range or rectangle to play with. Price is currently milling about near the resistance area at 1.3930 and the bullish momentum seems to be losing steam. Also, stochastic is now pointing down and moving away from the overbought region so an opportunity to go short may be presenting itself soon. And while the moving are oscillating, they’re now indicating a downtrend so get ready for a possible downside rectangle breakout as well.
Finally, I’ve got another descending channel pattern. This time, I’ve got one for EUR/CAD. And as y’all can see, price is also presently at the mid-channel area, and stochastic is pointing down and gunning for the oversold area as well. The moving averages also recently crossed-over into a downtrend, so if the pair will attempt a downside breakout, then the most likely direction is to the downside. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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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