Welcome to Fryay trading, forex friends!
Whether you like trading the majors or you’re more into comdoll crosses, I got yo back with potential breakouts on USD/CHF and GBP/CAD.
Check these setups out while they’re still valid!
GBP/CAD has been on a downtrend since mid-February when the pair got rejected at the 1.7400 psychological handle.
GBP is now trading closer to 1.5600, which lines up with the 4-hour chart’s 200 SMA and a 38.2% Fibonacci retracement, and a trend line resistance that hasn’t been broken since March.
Can GBP/CAD extend its months-long downtrend?
The confluence of technical resistance levels put the odds in the bears’ favor for now, but I wouldn’t rule out an upside breakout in the next trading sessions.
A rejection at the trend line resistance could drag GBP down to its July lows, while a clear breakout could push the pair to the 1.5750 or 1.6000 previous inflection points.
Hollah if you feel like trading the dollah!
USD/CHF looks like it’s about to break down from the .9550 psychological handle that has been serving as a mid-term range support.
If USD/CHF does break below its range support, then we could see USD drop to the .9400 zone closer to the daily chart’s 200 SMA and previous resistance area.
Stochastic is flashing an oversold signal, though, so USD traders better not ignore the possibility that the range would hold for another day.
A bounce from .9500 could lead to a retest of the .9700 or .9800 previous areas of interest.
What do you think? Which way will USD/CHF go in the next couple of days?