We’re revisiting the Dollar vs the Canadian dollar pair (USDCAD) which we covered 3 weeks ago. The setup was an ascending triangle on the daily timeframe. On the daily chart it is quite clear that the direction the price took following the breakout of the pattern is downwards. At the time of the previous analysis, price was within the pattern at the lower boundary that acted as support. In the ensuing weeks, the price broke out below, came back for a retest and was resisted.
We monitor the price to see whether the bears will continue to push prices lower and possibly to the near term level.
An ascending channel on the daily chart of The Australian dollar vs The Swiss Franc (AUDCHF) is our point of focus this week. The pair has been in a bearish trend for 3 years. The price is currently at the resistance level (upper boundary of the pattern) which coincides with the major level of the ascending channel. Bulls are dominant within the pattern, forming consecutive higher highs.
Looking at the previous candle which was an engulfing one, that candlestick at a major level may be an indication of bearish momentum coming in. However, as always we need to wait for a breakout because price may breakout on either side. Again patience is key, also consider the trend before opening any positions.
Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.