Can’t get enough of trends?
Neither can we!
Check out USD/CAD’s consolidation near the top of a channel while AUD/CHF approaches a key trend line support.
USD/CAD: 1-hour
Let’s get ready to rumbleeeeeeee!!! No, seriously. USD/CAD may soon find a new direction!
The pair is consolidating at the 1.2600 psychological handle, which lines up with the top of a descending channel on the 1-hour time frame.
And if that’s not enough to make you take notice, Stochastic is also showing a bearish divergence from USD/CAD’s prices.
Will USD/CAD extend its month-long downtrend? Dollar bears can start selling at the first signs of bearish momentum or as soon as USD/CAD dips below the 100 and 200 SMAs on the chart.
If you’d rather buy USD/CAD, or if you’re not sure about selling the pair, then you can also consider buying the dollar once it breaks above the channel that we’ve marked.
AUD/CHF: 4-hour
In case you missed it, AUD/CHF has been locked inside a 170-pip range since late March.
Watch the pair as it approaches the .6975 zone that coincides with the mid-range levels, 100 SMA on the 4-hour chart, and a trend line support that’s been around since mid-February.
A bounce from the .6950 area could propel AUD/CHF back up to its monthly highs.
If AUD/CHF breaks below the support levels that we’ve talked about, however, then it may retest its range lows closer to the .6900 area of interest.
Good luck and good trading this one!
