Price is still in a sideways range area on the CADJPY. The daily chart below shows that there is a high, low and a mid-range area of this sideways area. We should trade carefully in the market like this. The price often moves so range between the high, the low or the mid-range. But, it doesn’t mean we can’t hunt the opportunity to open a trade in this kind of market environment. The high, the low and the mid-range could be the area for us to buy or sell the pairs, with the target between those level also.
Recently, price on the CADJPY has just broken the mid-range level. I marked this level now as the resistance area. I will wait for the price to retrace back to this level and start hunting for a bearish signal in intraday or daily time frame. The reasonable target will be the lows of the sideway range area.
CADJPY daily chart
Price on the CADCHF has broken the daily support level, with the strong momentum downward. This old support level now acts as the resistance level.
On the 4 hour chart, we can see that price has formed a lower-low in a strong downward movement. As the 4-hour chart shows below, price on the CADCHF is on its way retrace back to this old support/new resistance level. I will wait for the opportunity to go short in the intraday time frame.
We should also notice about today event on Switzerland interest rate decision. I’m not a big fan of fundamental, but the major event, especially rate decision, always become my consideration since it can drive to which direction the pair will move. Don’t forget about a ‘black swan’ event on January when the SNB (Swiss National Bank) decide to cut their rate from -0.25% to -0.75%.
CADCHF daily chart
CADCHF 4-hour chart – zoom out
CADCHF 4-hour chart – zoom in
Price on the NZDCAD continued to move upward and has broken the resistance level in the daily chart. This level has been proven as the strong resistance level, as we can see in the past that price has been rejected several times. I will wait for the price to make a retrace move back to the old resistance/new support level and start hunting for the opportunity to go long.
On the 4-hour chart we can see that the opportunity already occur. There is a nice Bullish Engulfing Bar that can be traded as the continuation setup, but the risk-reward ratio is too shallow since the next resistance level is too near. So, I prefer to wait for the price to retrace back and start hunting for a better opportunity.
NZDCAD daily chart
NZDCAD 4-hour chart