I’ve got a rising wedge for CAD/CHF and a rectangle on EUR/CAD in today’s intraday charts update that y’all may like. Get ’em while they’re still fresh, dawg!
Yo! If y’all can still recall, we had a Fibonacci retracement play for CAD/CHF back on May 12. Well, that setup played out beautifully since 0.7350 held as resistance and the pair then moved lower for almost 200 pips. Aww, yea!
For today’s play, I’ve got something for the gangsta breakout chartist out there. As y’all can see, a rising wedge has recently formed on the pair’s 1-hour chart. A rising wedge, despite the name, is actually more of a bearish chart pattern, so we be lookin’ to go short on the pair.
Looking at our technical indicators, they seem to be in favor of further downside moves as well. Stochastic, for one, is already signaling overbought conditions and all that. Them moving averages, meanwhile are in downtrend mode. And it even looks like the 100 SMA is acting as dynamic resistance.
However, there’s always a slim chance that the pair may break to the topside instead. As such, y’all may wanna think about bailing yo shorts or switching bias should the pair stage an upside breakout and smash past 0.7250 on strong bullish momentum.
If trading breakouts ain’t your thing, then you may like what I’ve got on EUR/CAD’s 1-hour forex chart.
As y’all can see on that there chart, EUR/CAD has recently been trading sideways while respecting resistance at 1.5200 and support at 1.5100. This gives us a 100-pip trading range or rectangle pattern to play with.
And if y’all be planning to trade within the range, then y’all better start lookin’ for opportunities to go long, given that the pair appears to be bouncing off the the rectangle’s support area. In addition, stochastic has already reached oversold territory.
Do note that there’s also a chance for a rectangle breakout. And a topside breakout seems to be a more probable scenario in this case. After all, them moving averages are in uptrend mode. Moreover, the pair has yet to break that there rising trend-line.
But just in case a downside breakout happens and the trend line is broken, then them bears will likely be gunning for the next major psychological level at 1.5000. In any case, y’all just make sure 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.