Whether you’re looking for a simple trend play or a potential breakout, I’ve got you covered on today’s set!
Think these pairs are in for big moves?
EUR/CAD: 1-hour
Heads up, breakout traders!
We might have a big one coming up on EUR/CAD, as the pair is consolidating tightly inside a symmetrical triangle on the hourly chart.
The pair is hovering around the bottom of the triangle, probably gearing up for another test of support at the 1.4000 major psychological mark. A break below this could set off a drop that’s the same height as the triangle or roughly 600 pips, so better keep your eyes peeled!
Technical indicators seem to be favoring a bearish move, too. The 100 SMA is below the 200 SMA while Stochastic is on the move down, indicating that sellers have the upper hand.
If buyers continue to defend the floor, though, EUR/CAD might make its way back to the triangle top at 1.4100 and even consider a bullish breakout.
USD/CHF: 4-hour
After busting through the strong ceiling near the .9300 handle, USD/CHF finally looks ready for a pullback. Using the handy-dandy Fib tool shows where more buyers might be waiting to hop in.
I’ve got my eye on the 61.8% retracement level that’s in line with the broken resistance level which might now hold as support. This is also near the 100 SMA dynamic inflection point that adds to its strength as a floor.
Stochastic has a bit more room to head south before reaching the oversold region, so the correction could carry on. If buyers are eager to hop in, the 50% level might already be enough to keep losses in check near the mid-channel area of interest.
It’s also worth noting that the moving averages made a bullish crossover to confirm that the uptrend is more likely to resume than to reverse. If any of the Fibs hold, USD/CHF might set its sights back on the swing high at the .9450 minor psychological mark.
