Word up, peeps! I’m mixing it up a bit in today’s intraday charts update, with a channel on USD/CAD and a Fibonacci retracement setup on CAD/JPY. Check ’em out!
USD/CAD’s price action has been tilting to the downside lately. And if we connect the most recent peaks and troughs, we can see that the pair has been moving lower while trapped inside that there descending channel.
And presently, the pair is testing the channel’s resistance area at 1.3030. Y’all may therefore wanna start lookin’ for opportunities to go short.
And looking at our technical indicators, we can see that the moving averages are indicating a healthy downtrend. The 100 SMA even appears to be acting as dynamic resistance. Stochastic, meanwhile, is pointing back down again after entering overbought territory.
So far, everything seems to point to further moves to the downside. But as usual, just keep in mind that the risk for an upside channel breakout is always there.
And if that unlikely scenario plays out, then y’all may wanna bail yo shorts if the pair validates the topside breakout by moving higher past 1.3070 and then 1.3110.
No fancy forex chart patterns here! What we have here is a plain vanilla Fibonaaci retracement setup.
Looking at the chart above, we can see that the pair is currently testing the 50% retracement level. And it just so happens that that the 50% retracement level is just above the 85.50 minor psychological.
There’s therefore a good chance that support may form. And all the more so, given that stochastic is already signaling oversold conditions and all that.
If support does form, and if the pair does start moving back up, then that means that bulls are likely gunning for 87.10. However, just make sure to keep a close eye on the pair since sellers may be waiting at the area of interest at 85.70.
Also, do keep in mind that there’s always a risk that the setup may fail, so just be ready to bail yo longs if the pair invalidates the setup by moving lower past 84.80. Although a move lower past 85.20 would be an early warning sign, especially if bearish momentum is strong.
Anyhow, y’all just make sure to practice proper risk management as always, a’ight? Peace out!