If you’re looking for short-term setups on the Loonie, then I’ve got your fix ‘coz I’m serving up a retracement setup on GBP/CAD and a channel on USD/CAD in today’s intraday charts update.
And back then, the pair was near the channel’s resistance, so we were waiting for the pair to pull back towards either 1.3110 or 1.3160 so that we can jump in with a long.
Well, the pair did pull back and 1.3160 served as support before sending the pair back up towards the channel’s resistance. And if you were able to catch the upswing, then give yo self a pat on the back. Aww, yeah!
Anyhow, since the pair is back at the channel’s resistance area, today’s play is therefore to wait for the pair to pull back towards the channel’s support again, which should be at or somewhere between the 1.3200 major psychological level and the area of interest at 1.3160.
Of course, there’s always a risk that support may fail to form and lead to a downside channel breakout. And if that happens, then 1.3110 would be the price level to watch since a move lower past that would validate the downside breakout.
No fancy chart patterns here! As y’all can see, GBP/CAD is currently pulling back after slumping hard a few days ago.
And since them moving averages are already in downtrend mode, and since the 200 SMA appears to be acting as dynamic resistance, there’s a chance that the pair may move back down again.
And if we apply our handy Fibonacci tool, we can see that the pair very recently tested the 50% retracement level, which happens to line up with the area of interest at 1.7030.
But before y’all jump in with a short, do consider that the pair appears to be respecting a rising trend line. It would therefore probably be safer to wait for the pair to break that trend line first. And ideally, the pair should smash lower past 1.6970 and 1.6910 on strong bearish momentum.
If such a scenario plays out, then that means that bears will likely be gunning for 1.6780 and 1.6650 next.
However, if 1.7030 fails to hold as resistance and the pair moves higher, then clearing the 1.7100 major psychological level would be a sign that bulls are in control.
In any case, y’all just make sure to practice proper risk management as always, a’ight?