CAD/CHF a pair that I don’t touch upon too often, but it looks like the recent bearish divergence signal on the four hour chart formed is starting to pan out. We can see a string of higher “highs” on price and lower “highs” on the stochastic throughout February move may be coming, and with consolidation in March so far, it looks like the bulls have finally run out of steam.
The move to watch out for now is a break below the 200 SMA and the broken resistance-turned-support around the .7350 handle before sellers may start to pay attention and jump in.
On GBP/CAD, it looks like we’ve got a brand new descending channel forming on the one hour forex chart. The pair is breaking back above the strong level of interest at 1.8750 on recent oil weakness, so it could draw in a bit more buyers to bring it back to the where we may see potential resistance around 1.8900 – 1.9000. If it does, then we’ve got a fully formed channel that’s worth considering for a short play.
Finally we’ve got NZD/CAD, popping higher after once again finding tons of support just under the .8800 handle. If Loonie weakness persists, it could reach the declining trendline that’s marked lower highs as far back as December 2015. Look for potential resistance there and if it does hold, we may have a descending triangle forming, which tends to be a signal of a strong bearish move coming if broken on a strong catalyst.
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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.