I’m serving up a mix of trend, breakout, and pullback setups on the currency crosses this week. Take your pick!
First up is this simple trend play on the daily time frame of Guppy. Price is making another bounce off the descending channel resistance, which happens to line up with a former support zone.
Sellers could be eager to return from here as stochastic has reached the overbought region and is starting to turn lower while the pair gapped lower over the weekend. This suggests enough momentum to test the next floor at the mid-channel area of interest or all the way down to the swing low then channel bottom.
If you’ve also been watching this GBP/CAD reversal pattern like I have, then you’ve probably seen that the pair already busted through the double bottom neckline!
This confirms that an uptrend is in the cards, likely lasting by the same height as the chart formation, which spans 1.6600 to around 1.6800. However, stochastic is showing that buyers are feeling exhausted and could use a break for now.
This might lead to a retest of the broken neckline around the 50% Fibonacci retracement level where more pound bulls could be waiting to charge.
Last but certainly not least is this upside break on the ascending channel of CHF/JPY. This channel has been holding for quite some time already, and buyers seem ready for a steeper climb from here.
However, stochastic is heading lower to signal that sellers are gaining control and could push for a dip back to the broken resistance. This is just above the 38.2% Fib at 113.50 and an area of interest where buyers might be hoping to join in.
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