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!
Here’s a zoomed in update on that CAD/CHF weekly channel bounce I showed y’all last week! Price is still hovering around support, trying to get enough bullish momentum for a break past the double bottom neckline around .7425.
This chart pattern is approximately 200 pips tall, so the resulting rally could be of at least the same height. However, stochastic is still pointing down for now, which suggests that sellers have the upper hand.
The Loonie has been able to stand its ground thanks to risk-taking despite weaker oil prices in the previous week. Canada’s upcoming jobs release could set its direction, although the franc could also have a say if risk sentiment hogs the spotlight.
Not a fan of the Loonie? This other franc pair might be of better interest to ya! After all, the euro could draw support from hawkish ECB commentary, especially if the flash CPI readings support their positive views.
On the 1-hour time frame, EUR/CHF is bouncing off support at the 38.2% Fib and 1.1750 minor psychological mark, which coincides with a former resistance level. Stochastic is pointing up to indicate that bulls have the upper hand and could take the pair up to the swing high and beyond.
Here’s another one for the euro bulls out there! EUR/GBP has just bounced off its long-term descending channel support to show a potential countertrend opportunity back up to the top.
Stochastic is also pulling higher so the pair might follow suit, making its way to the mid-channel area of interest around .8800 or all the way to the resistance at .8950.
Don’t forget that the U.K. industry PMI readings are lined up and BOE head honcho Carney has a speech due, so another test of support could still be a possibility.
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