I’ve got my one good eye on the Loonie pairs this week with these neat plays on CAD/CHF, NZD/CAD, and GBP/CAD. Check ’em out!
Don’t look now but CAD/CHF is bouncing right off the bottom of its weekly ascending channel pattern. To make this setup even sweeter is a tiny double bottom formation right on this long-term support!
Stochastic also seems to be moving up to indicate that buyers are in control. I’d probably wait for a break past the reversal pattern’s neckline for a bit more confirmation and bullish momentum before hopping in. It’s a wide target all the way to the top of the channel or even the mid-channel area of interest after all!
This pair still seems to be in correction mode, this time on a longer-term chart than what I was watching last week. Rising crude oil lifted the correlated Loonie, taking NZD/CAD to the bottom of its rising channel on the 4-hour time frame.
Stochastic is also pulling higher to indicate that bullish pressure is returning, possibly enough to take price up to the top at the .9600 area and beyond. A break below support, on the other hand, could mark the start of a downtrend.
For the short-term traders out there, here’s a classic break-and-retest situation on GBP/CAD’s 1-hour chart. Price has been cruising above an ascending trend line and looks ready for another test of support.
This is in line with the 61.8% Fibonacci retracement level, which also happens to coincide with a former resistance at the 1.8000 major psychological mark. If it holds, the pair could make its way back up to the swing high or create new ones!
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