EUR/CAD has steadily grinding ever lower while respecting that there descending channel. As I always say, one of the more conservative ways to play a descending channel is to look for shorting opportunities near the channel’s resistance area. Unfortunately, price is about to test the channel’s support area, so more conservative forex traders may wanna wait this one out for now. But for the more gangsta traders out there, just note that stochastic is already signaling oversold conditions, so bulls may try to send the pair higher sooner or later.
The setup for EUR/CAD doesn’t have a conservative setup at the moment. However, conservative forex traders out there can rejoice, since we do have a conservative setup on USD/CAD’s 1-hour time frame. As y’all can see, USD/CAD is about to test that there descending channel’s resistance area. And looking at our technical indicators, we can see that the moving averages have already crossed over into downtrend mode. Stochastic, meanwhile, has already reached overbought territory. Things are therefore looking good for a potential down move. It would even be better if a candlestick formation emerges later.
If trading breakouts is more your style, then check out that there symmetrical triangle on GBP/CAD;s 1-hour chart. A symmetrical triangle means that bulls and bears are playing a game of tug-o-war, but neither side has a clear advantage. The pair may therefore break out in either direction. And should a breakout occur, then the resulting rally or selloff may have enough momentum for a solid 250-pip moves, based on the height of the triangle.
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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.