Breakout artists out there may wanna put EUR/CAD on their watchlist, since a falling wedge pattern has emerged. A falling wedge is a bullish chart pattern, so our main directional bias is obviously to the upside. However, always keep in mind that there is always a possibility for a downside breakout. Anyhow, the chart pattern is about 200 pips tall, so a breakout move could potentially last for the same amount.
If riding the trend is more your style, then check out that there ascending channel for EUR/GBP. And as y’all can see, the pair is just about to test the channel’s support area, so y’all better start sniffing around for opportunities to go long. Looking at our technical indicators, the moving averaged are indicating a healthy uptrend and the 100 SMA has even been serving as dynamic support. Hopefully, the 100 SMA would continue to serve as dynamic support now that the pair has reached it. As for stochastic, it’s still some distance away from oversold territory, so do be extra careful since the bears may not be out of steam just yet.
For our last item, I’ve got yet another channel for EUR/CHF. Well, this one is only a potential channel since the pair has yet to validate it. And the way for the pair to validate it is to climb higher. Of course, going long here is a counter-trend setup, given that the moving averages have recently crossed-over into downtrend mode. As such, more conservative forex traders may wanna sit this one out.
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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.