GBP/CAD has been trending lower while bouncing up and down inside a descending channel on its 1-hour time frame. The pair is currently making its way back up again but seems to be getting sellers at the mid-channel area. And since stochastic is already pointing down after briefly touching the overbought area, there’s a good chance that the pair may start moving back down again without testing the channel’s resistance area. Also, the 200 SMA seems to be acting as dynamic resistance, which is another technical argument that supports a down move.
NZD/CAD has been making lower peaks while failing to breach support around the price area with very significant market interest at the 0.8790 handle. As such, a descending triangle pattern has formed that you can even see on the higher time frames. A descending triangle is a bearish forex chart pattern, so our main directional bias is to the downside, although an upside breakout always has a chance of happening as well. In any case, a breakout move may have enough momentum for a 320-pip move, based on the height of the pattern.
As y’all can see, EUR/CAD was finally able to move past support at the 1.4650 minor psychological level before encountering another support area at the 1.4410 handle. The rejection was violent enough that the pair was sent back to 1.4650, but the price area held as support-turned-resistance, and the pair made its way back down again. Presently, price is testing the 1.4410 support area again. And if support holds, then we may be getting a double bottom pattern on our hands. And using the 1.4650 level as the neckline, an upside breakout may have enough steam for a 240-pip move. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
Forex Chart Settings:
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.