For this week’s final intraday charts update, I’ve got a Fibonacci retracement setup for CAD/CHF and a potential triangle breakout on USD/CAD. Check ’em out!
CAD/CHF has been consolidating after pulling back from a downtrend recently. And if we apply our Fibonacci tool, we can see that the pair bounced off from the 50% retracemnent level before consolidating.
Even better, the pair appears to be milling about at the 0.7350 minor psychological level, which has seen significant market interest recently. There’s therefore a better-than-average chance that the resistance would form here before sending the pair lower again.
However, our technical indicators seem to favor further moves to the upside. Stochastic, for instance just tested the oversold area. Them moving averages, meanwhile, just recently crossed-over into uptrend mode. Moreover, the 100 SMA appears to be acting as dynamic support.
There’s therefore also a chance that pair may continue moving higher instead. So y’all may wanna bail or switch bias if the pair breaches 0.7410, especially if bullish momentum is strong.
Is USD/CAD ready to bust some downside moves? Well, looks like there’s a higher-than-average chance, given that a descending triangle appears to have formed on the pair’s 1-hour chart. In addition, stochastic is pointing back down already while them moving averages are in downtrend mode.
And if the pair does smash past support at 1.3650, then the pair would likely have enough steam for a 140-pip downside move. However, there’s always a small chance that the pair would break to the upside instead. Y’all may there wanna think about bailing yo shorts or going long, if the pair clears 1.3790. In any case, just remember to practice proper risk management, a’ight?
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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.