CAD/JPY has been trading slowly higher while inside what seems to be an ascending channel. And it looks like the pair is just about ready to make its way down again since stochastic is pointing down and moving away from overbought territory. Do note that looking for shorting opportunities on the pair is a counter-trend setup so more conservative forex traders may wanna sit this one out, especially since there’s a chance that the 100 SMA may act as dynamic support for price to attempt an upside channel breakout.
Like CAD/JPY, CAD/CHF has also been grinding higher while forming a potential ascending channel. This one has a much higher chance of an upside breakout, however, since stochastic is already pointing up while moving away from oversold territory, not to mention the fact that the moving averages have already crossed over into uptrend mode for quite some time. 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, okay?
If you’re not in the mood for channels, then how about a break-and-retest setup? As y’all can see, price smashed through resistance at the 0.9750 minor psychological level with sufficient and convincing momentum only to meet buyers around the 0.9600 major psychological level. There have been enough buying interest to cause price to pull back, giving us a textbook break-and-retest setup to play with. Applying our Fibonacci tool, we can see that price is currently at the 38.2% Fibonacci retracement level, which happens to be just below the support-turned-resistance level at 0.9750. Stochastic is already indicating oversold conditions, so we may be getting some sellers soon. However, stochastic is still pointing up, so there’s a chance that price will climb higher to the 50% retracement level wherein the 200 SMA may act as dynamic resistance.
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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