CAD/CHF has recently been trending lower while bouncing up and down inside a descending channel, which you can see above. The pair is presently testing the channel’s resistance area, so if you’re bearish on the pair, then you better start looking for opportunities to go short. Another technical argument favoring further downside moves is stochastic signalling overbought conditions. Moreover, the moving averages have also recently crossed-over into downtrend mode, confirming the new downtrend.
If you’re more bullish on the Loonie (or bearish on the pound), then check out that Fibonacci setup for GBP/CAD. As y’all can see, the pair is presently making its way higher after finding support at the 1.6610 handle. And it looks like price is just about to reach the the former support area at 1.7080 (dashed horizontal line). And using our handy Fibonacci tool, we can see that the 1.7080 handle lines up rather nicely with the 50% retracement level, which increases the probability that resistance will form there, so keep an eye on this pair.
CAD/JPY recently invalidated a rising trend line while forming a newly minted descending channel. Unlike the setup for CAD/CHF earlier, however, price is currently milling about near the descending channel’s support area. This means that the main play on this chart is to go long, which is a counter-trend setup, so more conservative forex traders may wanna sit this one out for now. For the more aggressive forex traders out there who are considering a trade based on this chart, just make sure to practice proper risk management, okay?
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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.