Finishing the trading week off with these neat correction setups on a couple of Loonie pairs!
Is the trend still my friend on GBP/CAD and USD/CAD?
Here are the levels to watch.
GBP/CAD: 1-hour
GBP/CAD 1-hour Forex Chart
This pair has been cruising inside a falling channel for almost a whole month already!
Another pullback to the resistance might be in the works, as price is currently bouncing off support and testing the 38.2% Fib.
Will the downtrend resume soon?
Technical indicators are suggesting so, as the 100 SMA still seems to be below the 200 SMA for now. At the same time, Stochastic is approaching the overbought region to hint that buyers could take a breather soon.
However, the gap between the moving averages is pretty narrow, so better stay on the lookout for a bullish crossover. These dynamic inflection points coincide with the mid-channel area of interest to add to its strength as a ceiling, though.
Sellers might also be hanging around the 61.8% Fib closer to the top of the channel and 1.5500 major psychological resistance.
If any of the Fibs hold as resistance, GBP/CAD could resume the slide to the swing low next!
USD/CAD: 4-hour
USD/CAD 4-hour Forex Chart
Feeling bearish on the Loonie?
This uptrend setup on the 4-hour chart of USD/CAD might work out for you!
The pair is already retreating to the mid-channel area of interest that’s right smack in line with the 50% Fib and 200 SMA dynamic support. A larger correction could reach the 61.8% level near the 1.2800 handle and channel bottom.
Buyers might be ready to return soon since Stochastic is starting to pull higher from the oversold region. This means that sellers are exhausted and allowing bullish pressure to take hold.
Also, the 100 SMA is still above the 200 SMA to confirm that the climb is more likely to resume than to reverse. In that case, USD/CAD could make its way back up to the swing high or the top of the channel.
